PayPal launches its own stablecoin PYUSD, sparking industry discussions

Digital payment giant PayPal has finally launched its own dollar stablecoin PYUSD after a long period of preparation. The company stated that users can "buy, sell, hold, and transfer" this new digital currency on its platform.

PYUSD is an ERC-20 token issued on the Ethereum blockchain. PayPal claims that users can send PYUSD for free to eligible accounts in the U.S. and can also use it for online shopping, just like using regular USD or credit cards. Additionally, users can use PYUSD to purchase other cryptocurrencies supported by PayPal.

However, this initiative has sparked mixed reactions within the crypto community. Some users question the utility and potential demand for PYUSD. Analysts have pointed out that PayPal has used an older version of the Solidity programming language to develop its smart contracts, which may pose certain risks. Others have expressed concerns about the centralized management of PYUSD, believing that administrators may have the authority to suspend transactions, freeze addresses, or even arbitrarily issue new tokens.

The choice to issue PYUSD on the Ethereum network has also sparked controversy. Supporters argue that this is an important milestone for the Ethereum ecosystem, while critics are concerned that the high gas fees could affect user experience.

It is worth noting that PayPal has previously ventured into the crypto space. The company allows customers to hold mainstream cryptocurrencies such as Bitcoin and revealed in its first-quarter report that it has custodial services for nearly $1 billion in crypto assets for its customers. PayPal has also invested in several blockchain startups, demonstrating a strong interest in the Web3 space.

Although the plan to launch PYUSD was briefly put on hold due to regulatory reasons, PayPal ultimately completed this project in collaboration with Paxos. Paxos states that PYUSD represents a new era of US dollars on the blockchain and is "the world's safest dollar-backed digital asset."

However, not all crypto enthusiasts welcome this. Some analysts believe that true innovation should focus on decentralized assets like Bitcoin, rather than the investments of large tech companies in blockchain.

With the launch of PYUSD, we will continue to pay attention to its performance in the market and the potential impact it may have on the entire cryptocurrency ecosystem.