PayPal is Introducing a new crypto currency and you’ll be able to buy, sell, hold, and transfer it in the app. 1 USD : 1 PYUSD on PayPal
Oh yeah!
Like money, but worse…
- Not universally accepted.
- Controlled by a company.
Can’t wait to find out how this will go bad and ends up screwing over the PayPal customer base.
Leans into mic
Pass.
But why? To avoid banking regulations or what?
I don’t understand what this provides. They already make it so you don’t have to give out credit card info. Is it just to avoid bank fees in some way? Avoid banking regulation?
Stablecoins are kind of unique because their goal is to be… Well… Stable. they are working as designed if their value is exactly pegged to $1.
Which means that if you manage a stablecoin, you accept other people’s dollars, and give them these tokens in exchange. When those people come back to redeem them, whether it’s next month or 50 years from now, they are expecting to get the same number of dollars back.
Tether is the top stablecoin in the Crypto Universe. It is traded on several Crypto exchanges, and can somehow maintain it’s peg to USD no matter how many trades there are. Tether’s Market Cap is currently over $80B dollars, and the Hong Kong company that maintains it promises it’s all backed by cash or cash equivalents. Many people are skeptical, because that’s a Metric Fuckload of cash, and while Tether has released some things it says are proof of reserves, they have never been able to release a full audit. But even an idiot money manager can make a ton of money if they have a kitty of $80B to manage, with no expectation of any return.
So it’s possible that Paypal isn’t satisfied to just hold it’s own customers money, and wants a piece of that Tether float…
But isn’t the point of cryptocurrencies to not be bound to a central authority?
The stable coins are basically tokens in blockchains, for example in Ethereum there’s USDT as a token and now this one from PayPal. They work in a decentralized way but there’s a centralized entity guaranteeing that its value is pegged to the dollar.
Wow. Yeah, even if they literally just had it in a bank account, which I think can’t even be considered an investment, the interest on that would be very substantial.
This is like $$, but with extra steps and burning a lot of fossil fuels.
Oh boy can’t wait to try out this ponzi scheme
How is a stabletoken pegged to the US dollar a “ponzi scheme?” You don’t earn anything by holding it.
How is a stabletoken pegged to the US dollar a “ponzi scheme?”
I think Do Kwon has a thing or two to say about that…
The Terra stablecoin wasn’t a ponzi. Even the Luna token that was used to back it wasn’t exactly a ponzi. It may have been a scam, and it was certainly a bad idea, but the word “ponzi” means something specific and not just “I don’t like that thing.”
So, bearing in mind the actual meaning of “ponzi scheme,” how exactly idoes PayPal’s stabletoken fit it?
Stablecoins can be Ponzis easily, because people hand over USD for tokens, and expect to be able to convert back at a later date. If the company keeps those USD in trust, that’s fine. If the company invests it all in the shitcoin of the week, and it all goes “poof”, and it can’t make up the difference, it will end up satisfying redemptions from other people’s deposits until there is no money anymore, and then it’s all worth zero. That’s a Ponzi.
This is what lots of people think Tether is doing, except that Tether can keep meeting redemptions.
You would think PayPal would have better controls than that, but who knows…
Works basically as a bank. You can’t expect any gain, but shouldn’t expect any loss. It’s basically decentralised banking.
You clearly don’t know anything about what you’re talking. You proved that when you compared this to UST…
The buzzword stablecoin sort of lost its luster when all of those stablecoins crashed at the same time as the unstable ones lol
Removed as a protest against the community’s support for campaigns to bring about the deaths of members of marginalized groups, and opposition to private entities working to prevent such campaigns, together with it’s mindless flaming and downvoting of anyone who disagrees.
Not really, just in time for the next bull run
You clearly don’t know what you’re talking about…
From fucking PayPal?? It’s one of the worst companies in the world and has entire websites dedicated to hating it. :)
Just in time for FedNow to take PayPal’s entire misbegotten business away!
Oh boy now I can wade through bullshit crypto nonsense when I use PayPal too, how fun.
Since all the comments are reflexively negative cuz crypto is filled with scams and nonsense with no need I’ll explain why this is actually useful in some scenarios i and friends had experiences with.
Trans artists can now accept commission payments without revealing their deadname. (Before this my friend had to rely on actual crypto like bitcoin which had high fees, and if they didn’t immediately transfer out to their bank it wasnt a stable price)
Friends who are no longer a citizen of a country (escaping russia due to death threats and lgbt status), or are seeking asylum (due to ukraine being invaded, south american coups by the US making their country unsafe), can now accept a stable currency thats not super shady and backed by a company with a professional reputation (friend had a company hire them to teach painting online and the company learned how to use the shady coin Tether to pay them because there is no way they can open a bank account for now. They accept crypto and then trade it locally for pesos/dollars)
Accept donations from any country without revealing your full name. Paypal is one of the few services that is accepted worldwide and this stablecoin makes it even easier for south americans to receive donations safely without making their full name publicly available to trolls/harassers.
I guess the purpose of this PayPal coin is the same as Tether: to circumvent some of the regulations that comes when trading cryptocurrencies with real USD.
They will probably require some KYC verification process before you can buy the coin, so PayPal will know exactly who you are. It’s up to PayPal to reveal your registered name or not.
I also doubt they will allow to send the coin to people outside US. They explicitly state in the page that it’s for US customers only.
These have always been potential benefits of crypto. If paypal makes these actually attainable without all the other burdensome bullshit that would be awesome.
You bring up good points about it being potentially useful for facilitating the movement of money across borders (and potentially doing so more anonymously now) within the PayPal ecosystem with fewer fees, but it’s an unnecessary step for pretty much anything else within PayPal as far as I’m concerned. It’s also definitely a bad place to park money long term unless you like inflation eating away at your buying power.
I’m not sure what you mean about high fees with Bitcoin, though, are you talking about exchange fees from fiat to Bitcoin and vice versa? I rarely pay any fees simply moving Bitcoin around.
Bitcoin has high fees if you’re moving Bitcoin between wallets within the blockchain. You don’t pay fees if you’re moving Bitcoin between wallets within the exchange, because those transactions aren’t registered to the blockchain. It’s essentially just registered into the exchanges internal spreadsheets.
I literally almost never pay fees when moving Bitcoin between wallets on the Blockchain. Fees aren’t required unless you want your transaction expedited.
What’s next for this cutting edge product team? Pogs? Beanie Babies? Silly bands? Poker? Jazzercise? Tulips?
Maybe they can offer new shares in the hot technology of terrestrial radio.
Not gonna lie, if PayPal releases a line of Pogs, I am all in.
No. I don’t think I will.
Jfc. Just fuck off, PayPal.
Oh good, another bullshit Ethereum backed token…just what the world needed.
They literally made Itchy and Scratchy money real
Hey, it’ll be fun!
oh yay … company scrip …
