PAYPAL Stablecoin Takeover?! What PYUSD Means For Crypto!!

PayPal recently announced the launch of Its stablecoin pyusd and it's kind of a Big deal I'm kind of a big deal some Have called it a watershed moment for Traditional finances move into the Crypto space an even bigger development Than blackrock's move to file for a spot Bitcoin ETF so in this video we'll dive Into the details of PayPal stablecoin We'll examine what it is how it came About and what it could mean for the Sector we'll also explain why some People are embracing the token While Others are deeply concerned now this Video won't however talk about the other Big development around PayPal recently Namely that the payment giant has Temporarily halted crypto purchases for Uk-based customers due to local Regulations so to learn more about that I'll leave a video link below okay now That that's clear back to our regular Scheduled programming PayPal is a giant with 435 million Accounts It Is by some metrics the third Largest payment company in the World Behind visa and American Express it's Available in over 200 countries and Regions and impressive feed considering That there are only 193 UN member states And here's another fun fact for you in 1999 a year after it was founded Paypal Was considered quote one of the worst Ideas of the year how things change eh

Anyway PayPal's foray into crypto goes Back several years in 2019 it was Briefly part of the Consortium backing Facebook's ill-fated efforts to create a Stablecoin Libra more on that later The following year PayPal began allowing Customers to buy BTC and eth and in 2022 The company began allowing users to Transfer their crypto assets to Third-party wallets and yet the Introduction of pyusd is on another Level Pyusd is the first stablecoin to be Launched by a major mainstream financial Company as the name suggests it's pegged To the US dollar and it's issued by Paxos a regulated blockchain Infrastructure company known for among Other things issuing the Pax dollar PUSD And previously the binance brand Stablecoin busd as you might remember Back in February the New York State Department of Financial Services ordered Paxos to stop issuing busd amid a Regulatory Crackdown on crypto Now PayPal's pyusd is currently only Available to customers in the United States this is of course somewhat Limiting since remittances and International payments are some of Crypto's most notable use cases but it Could be a shrewd move PayPal is moving cautiously in a bid to Keep us Regulators on site the company

No doubt learned a great deal from Facebook's Libra debacle a few years ago Allow me to explain Now Facebook's failure was due to a Myriad of missteps which are detailed in A tell-all piece by the financial times Which I'll link to below but the main Issue seemingly was Facebook's Unpopularity in Washington the company Now known as meta faced a major backlash After mishandling user data during the 2016 U.S presidential elections and was Deeply mistrusted by regulators The Libra project was an example of the Tech Giants quote unchecked expansion as U.S representative Maxine Waters Described it the Financial Times article Concluded that quote the very fact Facebook had conceived the idea Doom did And much of the current regulatory Scrutiny of the crypto industry stems From Libra and the extent to which it Spooked the U.S government and others Now PayPal on the other hand is more Regulated than meta and tends to play Nice with the powers that be unlike many Silicon Valley firms PayPal doesn't take Action and then seek forgiveness further Down the line instead it aims for Regulatory approval before a product Hits the market and another factor in PayPal's favor is the fact that pyusd is Fully and exclusively backed by Dollar Deposits short-term treasuries and

Similar cash equivalents Libra on the Other hand was meant to be backed by a Basket of Fiat currencies which Regulators feared would challenge the Dominance of the dollar PayPal's cautious approach is clearly Appreciated by lawmakers as Congressman Patrick McHenry chair of the house Financial Services committee wrote in The statement quote this announcement of PayPal stablecoin is a clear signal that Stablecoins if issued under a clear Regulatory framework hold promise as a Pillar of our 21st century payment System So that's the context and the regulatory Environment next let's look at why PayPal has made this bold move into the Stablecoin space But on the one hand the company Certainly recognizes the immense power Of blockchain Technology PayPal's crypto Lead Jose Fernandez de Ponte has Explained in multiple recent interviews That blockchain offers many advantages Over traditional Finance including Cutting transaction costs and improving Settlement times that's certainly true But PayPal also sees the stablecoin as An Avenue to tremendous earning Potential for context tether the company That issues usdt the leading stablecoin By market cap recorded a net profit of Nearly 1.5 billion dollars in the first

Quarter of 2023 and the sector is Expected to grow enormously one recent Study estimates that the value of Payment transactions powered by Stablecoins will exceed 187 billion dollars globally by 2028 up From 53 billion in 2023 PayPal naturally wants to get a piece of That pie and figures that with its Enormous base of existing users and Positive regard by Regulators it's in a Good position to get in on the action I Can't say I'm all that surprised So what if pyusd's users well they'll be Able to buy Pui USD on the PayPal app Using dollars or other cryptocurrencies Available on PayPal's Network such as BTC Bitcoin cash eth and Litecoin it can Then be used to fund purchases and will Soon be available on venmo a major U.S Mobile payment service owned by PayPal Over time users will be able to send Their token Holdings between PayPal and Venmo wallet and even third-party Digital wallets like metamask ILY a global crypto exchange platform With over 2 million monthly users has Also recently announced that pyusd will Soon be available to its customers on The technical side meanwhile pyusd is an Erc20 token issued on the ethereum Blockchain as PayPal's Jose said in an Interview with podcaster Laura Shin Ethereum was the clear first choice

Because quote the developer Community is Already there in case you're unfamiliar Ethereum leads the industry in terms of Developers with almost three times more Than Solana which has the next largest Developer pool Jose also expressed Confidence that developers would unlock New use cases for stable coins he Particularly singled out gaming as a Sector with tremendous potential in this Regard and it's easy to see why The blockchain-based gaming industry Market is expected to be worth 435 billion dollars by 2028 According to Some estimates Okay so that's pyusd in a nutshell next Let's look at how news of pyusd has been Received now many have hailed the Development as a great moment for crypto Carl Vogel who previously worked for Paxos wrote that quote through pyusd PayPal is on a journey to onboard Millions of people to crypto and public Blockchains others expect it to have a Massive impact on crypto prices Jamie Coots a crypto Market Analyst at Bloomberg intelligence believes that the Implications of PayPal's stablecoin Launch have not yet been fully factored Into the market He tweeted that if one percent of PayPal's customers convert a dollar Balance to pyusd that represents 4.35 Million users of pyusd adding that if

They began to really use it then the Ramifications for the ethereum ecosystem And eth itself will be massive but not Everyone is happy about pyusd several Software developers have looked through The source code and raised concerns Unsurprisingly it is centralized and as With other centralized stable coins like Usdt usdc and others PayPal has the Power to pause transactions freeze Addresses and potentially wipe a Customer's Supply This leaves the door open to abuse and Government overreach you only have to Look at the incident last year when Truck drivers protesting government Policy in Canada had their bank accounts Frozen to get a true sense of this Possibility at the same time for law Enforcement and asset recovery teams Trying to clamp down on scams and elicit Money foes PayPal's ability to freeze Assets is very welcome news Which leads me to my next point Be extra vigilant if you intend to buy Pyusd there have been a huge number of Scams around this as my colleague Jessica mentioned recently I'll leave a Link for you below if you want to find Out more about that okay so what's next Well while the rollout of pyusd may be Gradual its introduction marks a Significant milestone for PayPal and Potentially the industry more broadly as

Jose from PayPal aptly points out quote I don't think the revolution will happen Overnight I don't think that you're Going to be paying at your neighborhood Store with a stable coin anytime soon Be that as it may the move from a giant Like PayPal may have ignited a Revolution of sorts in Trad five so keep Your eyes peeled folks because other Payment juggernauts might just jump on The stablecoin bandwagon sooner than we Think And so what do you find people think are You excited or alarmed by PayPal Stablecoin do you think it will rest Market share away from the likes of usdt And usdc and do you think it'll help on Board the next wave of crypto users as Ever leave your comments below we love Hearing from you Before you go don't forget to hit that Like button and subscribe if you haven't Already want to spread the knowledge Well share this video with others and For those in the know and seeking secure Crypto storage or cost-effective trading Options why not visit the coin Bureau Deals page discover unbeatable deals on Top tier Hardware wallets and grab Bonuses and airdrops worth up to forty Thousand dollars from reputable crypto Exchanges okay that's all from us today See you again soon Thank you