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
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
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.