Paypal launches new digital coin

08 Aug 2023 04:05pm
Image for illustrative purposes only. - FILE PIX
Image for illustrative purposes only. - FILE PIX

WASHINGTON - US financial technology firm PayPal Holdings Inc is launching a new stablecoin denominated in US dollars, the PayPal USD (PYUSD), the company announced on Monday, reported German news agency dpa.

The digital coin, issued by Paxos Trust Company, is 100 per cent backed by US dollar deposits, short-term Treasuries, and other cash equivalents.

Its PYUSD is redeemable 1:1 for US dollars and can be bought or sold through PayPal at a rate of US$1.00 per PYUSD.

The company's PYUSD can be purchased or sold through its app or website.

This currency can also be exchanged for other supported cryptocurrencies and can be transferred between PayPal and compatible external wallets.

"The shift toward digital currencies requires a stable instrument that is both digitally native and easily connected to fiat currency like the US dollar," said Dan Schulman, president and chief executive of PayPal.

The company stated that PYUSD, which is an ERC-20 token that operates on the Ethereum blockchain, can be used by a broad community of external developers, wallet providers, and web3 applications and can be easily integrated by exchanges.

Its primary purpose is to reduce friction for in-experience payments in virtual environments and facilitate rapid value transfers for various purposes such as supporting friends and family, sending remittances, or conducting international payments.

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It also allows direct flows to developers and creators and encourages the continued expansion into digital assets by the largest brands in the world. - BERNAMA-dpa

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