Allowing a Crypto Pledge to Lead Us towards an Improved Set of Fintech Prospects

No matter what and how much human beings have in their bag, they still don’t have an ability more significant than the one which allows us to grow on a consistent basis. This progressive approach, on our part, has already got the world to hit upon some huge milestones, with technology appearing as a major member of the stated group. The reason why technology enjoys such an esteemed stature among people is, by and large, predicated upon its skill-set, which guided us towards a reality that nobody could have ever imagined otherwise. Nevertheless, if we look up close for a second, it will become clear how the whole runner was also very much inspired from the way we applied those skills across a real-world environment. The latter component was, in fact, what gave the creation a spectrum-wide presence, and consequentially, kickstarted a tech revolution. Of course, this revolution then went on to scale up the human experience through some outright unique avenues, but even after achieving such a monumental feat, technology will somehow continue to produce the right goods. The same has grown increasingly evident over the recent past, and assuming one new crypto-themed development shakes out just like we envision, it will only make that trend bigger and better moving forward.

Paypal has officially launched its first ever US dollar-denominated stablecoin called PayPal USD. Understood to be 100% backed by US dollar deposits, short-term U.S Treasuries and similar cash equivalents, PayPal USD will be, at launch, available to a limited set of eligible customers, who can use it to reduce friction for in-experience payments in virtual environments, facilitate fast transfers of value to support friends and family, send remittances or conduct international payments, and enable direct flows to developers and creators. Furthermore, the stablecoin will have an important role to play as far as accommodating world’s biggest companies’ expansion into digital assets is concerned. This it will do by establishing right away a clear compatibility with web3-specific environments that are currently holding the most of our stablecoins stock. However, PayPal USD won’t just stay there, considering the company already has plans in place to launch also it on Venmo sooner rather than later. Another detail we must mention here is how the stablecoin in question will be issued through Paxos Trust Company, a fully licensed limited purpose trust company. Hence, to support it, Paxos will publish a public monthly Reserve Report for PayPal USD that outlines the instruments composing the reserves. The company will also publish a public third-party attestation of the value of PayPal USD reserve assets. This attestation is to come through a an independent third-party accounting firm and conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants (AICPA).

“The shift toward digital currencies requires a stable instrument that is both digitally native and easily connected to fiat currency like the U.S. dollar,” said Dan Schulman, president and CEO of PayPal. “Our commitment to responsible innovation and compliance, and our track record delivering new experiences to our customers, provides the foundation necessary to contribute to the growth of digital payments through PayPal USD.”

All in all, customers who choose to purchase PayPal USD will be able to transfer it between PayPal and other compatible external wallets. Next up, they can use it for the purpose of conducting person-to-person payments, as well as fund purchases. Hold on, there is more, considering customers can also convert any of PayPal’s supported cryptocurrencies to and from PayPal USD, and they can do so completely at their own discretion.

Beyond these services, PayPal has also dedicated some focus towards increasing consumer and merchant comprehension of cryptocurrencies, stablecoins and central bank digital currencies (CBDCs). Hence, to achieve that, the company will provide specialized, but at the same time, easy-to-understand educational content.