Maxine Waters has revealed she is ‘deeply concerned’ about PayPal’s stablecoin plans, given the lack of regulatory framework around the space.
Waters, who is the leading Democrat on the House Financial Service Committee, issued a statement following the landmark moment of intent from PayPal, as she emphasised that consumer protections need to be integral to the firm’s plans.
‘PayPal USD’, or ‘PYUSD’, is set to be primarily exchanged for its fiat currency counterpart, as well as to be used to buy and sell other cryptocurrencies, such as Bitcoin.
PYUSD is also pegged against the US dollar, in order to ensure its value and significantly reduce the risk of volatility, often a criticism of many private cryptocurrencies, especially after the several high-profile collapses that occurred in the sector last year.
Dan Schulman, President and CEO of PayPal, stated on the coin: “The shift toward digital currencies requires a stable instrument that is both digitally native and easily connected to fiat currency like the US dollar.
“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.”
Nonetheless, 84-year-old Waters, has voiced displeasure at a proposed crypto bill put forward by the Republican Party which supports stablecoins, as US officials have sought to strengthen regulatory frameworks around digital currency.
In a statement on the progress of PayPal, Waters said: “Given PayPal’s size and reach, Federal oversight and enforcement of its stablecoin operations is essential in order to guarantee consumer protections and alleviate financial stability concerns.”