PayPal wants to keep getting more involved in the crypto world. They’re doing this by connecting their PYUSD stablecoin with DeFi, which is a way people use cryptocurrency for different financial things.
Big companies and institutions are trying out DeFi, a new way of using cryptocurrency for money-related stuff. One of these companies is PayPal, which many people know for online payments. They’ve recently made their own stablecoin called PYUSD and are using it more with crypto. This move is important for PayPal and the future of crypto.
PayPal has made a big step into the crypto world by creating PYUSD, their own stablecoin. Right now, you can only use PYUSD in the PayPal wallet, not on regular crypto exchanges. But PayPal’s plan is clear: they want PYUSD to be important not just for them, but for the whole crypto industry.
Targeting the Core of DeFi
Jose Fernandez da Ponte, who is in charge of blockchain, crypto, and digital currencies at PayPal, recently talked about their plans on the Unchained Podcast. He said that PayPal wants to make their stablecoin PYUSD not just compete with stablecoins like USDT and USDC, but also be a good choice like them.
Da Ponte explains, “Lots of people in crypto use stablecoins in DeFi. So, that’s where we want to begin.”
PYUSD is made to work well with technology. It’s an ERC-20 token, which fits perfectly with the Ethereum network. This makes it easy for people to use PYUSD in many different ways once it’s available everywhere.
💵 With PYUSD, can @PayPal onboard the masses to on-chain payments?
The company’s crypto lead, José Fernández da Ponte, says that’s the goal. 📈
🔊 Full episode: https://t.co/13adeaxKGH pic.twitter.com/lsfLPQNghh
— Laura Shin (@laurashin) August 11, 2023
Sailing Through Regulations
One big worry about crypto money is following the rules set by governments. But with PYUSD, there’s less to worry about. It follows the rules in the U.S. and is supported by Paxos, which is approved by the New York Department of Financial Security (DFS). This is important because New York has tough rules for knowing who’s using the money (KYC) and stopping bad money movements.
Da Ponte said they’re careful about rules. He said, “Since New York has hard rules, we’ve added strong checks to make sure we follow them.”
PayPal and the Future of PYUSD
PayPal is not just trying out crypto – they’re really getting into it with PYUSD. They want their stablecoin to be important in DeFi and other crypto uses.
Even though PYUSD isn’t on regular crypto exchanges yet, PayPal’s bigger plan is clear: they want PYUSD to be used widely. They want it to be safe, flexible, and follow the rules.
In short, big companies like PayPal are entering the world of crypto because traditional money and crypto are coming together. They don’t want to miss out. They’re going into the decentralized world, showing how important DeFi is, and suggesting that traditional and new ways of money can work together.
Important:Â Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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