PayPal Launches Stable Coin: This is the first major financial technology firm to include digital currency for payment.
Payment company PayPal has launched a stable coin. It will be linked to the US dollar. PayPal is the first major financial technology firm to include digital currency for payments and transfers. After this news came to the fore, the shares of the company have seen a gain of 2.66%. The founder of this company is Elon Musk. However, he sold it to eBay in 2002 for $1.5 billion.
Stable coins are a type of cryptocurrency designed to reduce volatility by being tied to the dollar rate. Tether is the largest stablecoin right now. Next is the USD coin. PayPal’s stable coin is named PayPal USD. It will be issued by a company named Pexos Trust. For now, this cryptocurrency will be limited to PayPal customers in the US.
You can convert stablecoins to US dollars at any time
One advantage of this stablecoin is that it can be converted to US dollars at any time. It can also be used to buy and sell other cryptocurrencies available on PayPal’s platform, including bitcoin.
Meta could not launch its stable coin in the year 2019
Even before this, many big companies tried to introduce stable coins, but they faced resistance from financial regulators. Meta was unable to launch its stable coin Libra in 2019 due to concerns related to global financial stability.
Make rules to control digital assets
In response to the growing interest in stable coins, several major economies including the European Union and the UK have recently enacted regulations to govern these digital assets. The EU policies are due to take effect in June 2024.
PayPal revolutionized the fintech sector
PayPal was started in 1998 when Peter Thiel and 3 partners formed a company called Confinity. Users could transact money through Confinity’s tablet-like device. In the year 2000, Musk merged it with his online banking company X.com and after some time renamed it PayPal. eBay bought it in 2002 for $1.5 billion. As of today, this amount is about 12 thousand crore rupees.
