PayPal Launches Stablecoin PYUSD: Features, Reactions, and Challenges

PayPal recently announced the launch of its own stablecoin PYUSD, allowing users to buy, sell, hold, and transfer on its platform. This move is a significant achievement after at least two years of consideration, development, and adjustment by the company.

PYUSD is issued as an ERC-20 token on the Ethereum blockchain, allowing users to send it for free to eligible accounts within the United States and use it for online shopping, just like using regular USD or credit cards. Additionally, PayPal also provides the functionality to convert PYUSD to other supported cryptocurrencies.

However, some users on social media have raised concerns about the practicality of PYUSD. Some pointed out that the stablecoin uses an older version of the Solidity programming language, which could raise security concerns. Others questioned the authority of the contract owner to pause transfers, freeze addresses, and arbitrarily increase the token supply.

The choice to issue PYUSD on the Ethereum network has also sparked different opinions. Some believe this is an important milestone for the Ethereum ecosystem, while others are concerned that the high gas fees may affect the cost of use.

It is worth noting that PayPal has been strategically involved in the cryptocurrency space for some time. The company currently allows customers to hold cryptocurrencies such as Bitcoin, Bitcoin Cash, Ethereum, and Litecoin, and disclosed in its first-quarter report this year that it has custody of nearly $1 billion in crypto assets for its customers.

Despite facing some challenges and skepticism regarding the launch of PYUSD, PayPal and its partner Paxos remain optimistic about the product. Paxos claims that PYUSD represents the next stage of the dollar on the blockchain and describes it as "the world's most secure dollar-backed digital asset."

However, the crypto community has responded differently. Some analysts believe that instead of focusing on the investments of large tech companies in blockchain, we should pay more attention to true innovations like Bitcoin.

Overall, the launch of PYUSD by PayPal is an important sign of the further integration between traditional finance and the cryptocurrency world, but its actual impact and market acceptance remain to be seen.