Payment Expert’s Blockchain Bulletin analyses how the world of blockchain is constantly evolving and having a major impact on the payment industry, with cryptocurrencies, NFTs and the metaverse revolutionising the space.
This week, PayPal made the landmark decision to become one of the first payment companies to launch its own native stablecoin – PYUSD – and one of its chief crypto SVPs spoke on its potential to break into the mainstream.
PayPal officially launches its PYUSD stablecoin
Becoming the first payment company to launch its own stablecoin, PayPal’s PYUSD announced its launch this week in a bid to bolster cryptocurrency payment adoption across its large user base.
Backed 1:1 with the US dollar – similar to other stablecoins such as USDC – PYUSD aims to be used for compatibility with other PayPal external wallets, a vehicle for person-to-person transactions and to fund various purchases.
Long-time stablecoin issuer Paxos helped develop the stablecoin and PayPal announced that it will be rolled out gradually to its US users in the coming months.
Dan Schulman, President and CEO of PayPal, commented: “The shift toward digital currencies requires a stable instrument that is both digitally native and easily connected to fiat currency like the US dollar.
PayPal Crypto SVP explains why now for stablecoins
“We see that there is interest and demand for additional tokens in this space and we see that relation moving forward in combination with this being also the right time.”
Jose Fernandez da Ponte, SVP, Blockchain, Crypto and Digital Currencies at PayPal, told CNBC that the issuance of PYUSD was a long time coming and outlined many benefits as to how its stablecoin can co-exist with many other of its payment methods.
He explained: “With cryptocurrency payments, you can usually have settlement times that can take seconds to minutes, where with traditional payment methods you are sending a wire internationally which can take days to settle.
“So when you are a merchant and you are intrigued about accelerating the time it takes for you to receive money, this is a very good application for that. But I don’t think that the revolution will happen overnight. It is going to be a process in which we are on the way toward mainstream adoption.”
Binance embraced in crypto friendly El Salvador
Despite enduring a difficult spell in several countries gaining clearances, Binance has received a full crypto licence from El Salvador, a country which was one of the first to fully embrace digital currencies.
As a result of the expansion, the firm has received a Bitcoin Services Provider license (BSP), by the Central Reserve Bank (Banco Central de Reserva).
El Salvador became the first country in the world to recognise Bitcoin as a legal tender in 2021 two years ago and approved a law regulating the issuance of other digital assets by both the state and private entities.
Binance’s market entry underlines the progression of El Salvador as a hub for innovation when it comes to digital currency. Binance will be hoping it can thrive in the region of El Salvador, as it continues in its bid to innovate.
Fasset launches new super app to foster digital asset adoption
Whilst super apps appear to be taking over the embedded finance space, Fasset has launched their own designed to make investing in digital assets as secure and compliant as possible.
The super app aims to make it easier for anyone to invest and save within a safe and compliant framework. Securing over one million sign-ups in the first week, with Indonesia, Pakistan and Turkey being the top three markets for users.
Mohammad Raafi Hossain, CEO of Fasset, said: “Fasset’s goal is to bring the opportunity of financial freedom to the fingertips of users across emerging markets. We’re laser-focused on unlocking the potential of real-world assets and translating them into economic opportunities for all.