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

  • dhork@lemmy.world
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    1 year ago

    Seems premature, while the SEC is still trying to treat every crypto like a security. This thing seems, on the surface, to be even more like a security than Ripple, since it’s a stablecoin and there’s an inherent promise that it will always be tied to the dollar…

    • FaceDeer@kbin.social
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      1 year ago

      Stablecoins seem like one of the least likely token types to count as a security. To be a security it has to pass the “Howey test”, which requires three criteria:

      • An investment of money
      • In a common enterprise
      • With an expectation of profit, derived from the efforts of others

      Buying a stabletoken could be argued to be “an investment of money in an common enterprise”, but I don’t see how there’s an expectation of profit derived from the efforts of others - stabletokens are specifically intended to not rise in value. If I buy a stabletoken and its value goes up it’s a failure as a stabletoken.

      • dhork@lemmy.world
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        1 year ago

        There’s still an expectation there, the expectation is that the return is zero. In fact, it’s the efforts of others that are ensuring the profit is zero. Isn’t zero a number?