In a significant move for the financial technology industry, PayPal has announced the introduction of a service that will allow U.S. customers to utilize a stablecoin, specifically the company’s PYUSD, for international payments. This development is poised to revolutionize the way cross-border transactions are conducted, offering a seamless and cost-effective alternative to traditional methods.
Stablecoins, digital currencies pegged to stable assets like the U.S. dollar, have emerged as a promising solution to the volatility often associated with cryptocurrencies. PayPal’s PYUSD, fully backed by U.S. dollar deposits and short-term U.S. treasuries, provides a reliable and transparent medium for international money transfers. The integration of PYUSD into PayPal’s existing international payments service, Xoom, enables users to convert PYUSD to USD and send funds to recipients in approximately 160 countries without incurring transaction fees.
This initiative by PayPal reflects a broader trend in the financial sector towards embracing digital currencies and blockchain technology. By leveraging the stability and efficiency of stablecoins, PayPal aims to reduce the global average cost of sending money internationally, which, according to a World Bank report, stands at just over 6% for a $200 transaction. The move is not only a testament to PayPal’s innovative spirit but also aligns with the company’s goal of driving mainstream adoption of cryptocurrencies.
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PayPal’s foray into stablecoin-based international payments is a response to the growing demand for digital currency solutions that can offer both security and convenience. The PYUSD stablecoin, launched last year, is designed to bridge the gap between fiat and digital currencies, providing a stable instrument that is both digitally native and easily connected to fiat currency like the U.S. dollar.
As an ERC-20 token issued on the Ethereum blockchain, PayPal USD (PYUSD) is accessible to a vast community of external developers, wallets, and web3 applications. It can be easily adopted by exchanges and deployed to power experiences within the PayPal ecosystem. The stablecoin is set to reduce friction for in-experience payments in virtual environments, facilitate fast value transfers, support remittances, and enable direct flows to developers and creators.
PayPal’s strategic move into stablecoin-based international payments is indicative of the company’s commitment to responsible innovation and compliance. It also underscores the potential of fully backed, regulated stablecoins to transform payments in web3 and digitally native environments. As the stablecoin market heats up, PayPal’s initiative could very well set a new standard for international money transfers, making them more accessible, efficient, and cost-effective for users around the globe.
I was seriously devastated after I felt played by this company , They took all my funds , They have wonderful ways to make you deposit all your hard earned money in the hope of doubling the funds or making some sort of profits back and you get slammed with a tax before withdrawals , I reported to RecoveringATusa com who is a cryptocurrency expert and I got my funds