PayPal has introduced its stablecoin to the community. It goes by the symbol PYUSD. PayPal’s stablecoin is backed by the US Dollar with a value equivalent to the fiat currency. Meaning 1 US Dollar translates to 1 PYUSD. The stablecoin will roll out in the days to come; however, the community can start registering on the platform effective immediately.
Once added to their wallets, holders of PYUSD will have the liberty to sell, purchase, hold, and/or transfer the value to other users in the ecosystem. The stablecoin by PayPal has been designed specifically for making payments to others. It is secured by highly liquid assets. The list already features BTC, ETH, and LTC. PYUSD is an addition to the list of digital tokens offered by PayPal.
The community has responded positively to this development. Some members have congratulated the team for introducing the stablecoin, and others have called it an awesome job to underline that PYUSD will do wonders for them. General T&Cs related to PayPal’s platform will apply.
Most importantly, users must register on the platform before getting started with adding PYUSD to their respective wallets. Existing users can log in to their accounts and make the addition. Others will have to sign up by choosing a Personal or Business account at PayPal.
It is easier to transact PYUSD. PayPal enables its users to buy and sell stablecoin through its mobile application and official website. The stablecoin can later be converted to other cryptocurrencies of their choice. PYUSD can be converted to BTC or ETH, or LTC based on a user’s preference. The only condition is that the cryptocurrency must be supported by PayPal. A minimal fee may apply depending on the cryptocurrency to which the user wishes to convert their holding.
Holders of PYUSD, or any other digital token for that matter, only have to select their digital token to settle the transaction with millions of online stores. PayPal sells the token on their behalf to make sure that the user’s bill has been duly paid by them. It can be transferred to others residing in the US for no fee. They should be on PayPal and reside in the US.
The fee applies if a user wants to convert PYUSD to other cryptocurrencies. There are no fees for holdings, transferring, buying, or selling the stablecoin via PayPal accounts that are eligible for the feature.
What makes PYUSD a reliable candidate in the market is the fact that it is backed by reserves. These are US treasuries, dollar deposits, and cash equivalents. The mechanism of PYUSD is such that it maintains the value in line with the US Dollar. The process of executing transactions on PayPal is seamless, and so is the process of checkout. It can be used to buy other cryptocurrencies via the Convert feature.
This is followed by an interesting promotion where PayPal has committed to pay back its users for ordering food.