PayPal’s crypto executive disclosed that selecting the Ethereum blockchain as the foundation for its stablecoin was an easy choice.
The Executive Vice President and General Manager of Blockchain, Cryptocurrencies, and Digital Currencies at PayPal. Jose Fernandez da Ponte stated that selecting Ethereum (ETH) as the platform’s stablecoin was a “easy choice” given that the developer community was already present.
The PYUSD Stablecoin
PayPal recently entered the stablecoin competition with the introduction of PYUSD, an Ethereum-based stablecoin. The stablecoin is pegged to U.S. dollars, putting PayPal in the same position as Tether and Circle, which issue USDT and USDC, respectively, for instantaneous value transmission across the globe on-chain.
The stablecoin PYUSD is deployed on the Ethereum blockchain as an ERC-20 token. Consequently, he verified that the stablecoin is transferable to other wallets that support ERC-20 tokens.
In a podcast with Unchained Journalist Laura Shin, Fernandez explained that PYUSD is quite distinct from other stablecoins such as USDT and USDC. First, he mentioned that it utilizes the PayPal ecosystem, which grants it access to bidirectional networks.
He noted that the stablecoin can also be used as an alternative payment method on e-commerce websites and with retailers that accept PayPal payments. PayPal’s SVP also highlighted the PYUSD’s connectivity to fiat currency as a benefit.
PYUSD is an Enhancement to PayPal’s Vision
When queried about the reasoning behind PayPal’s decision to launch a stablecoin, Jose explained that the company currently views stablecoins as the “killer application” for blockchain.
In addition, he emphasized that they are very near to the payments market, which is fundamental to PayPal. Fernandez went on to say that the introduction of PYUSD is an evolution of PayPal’s vision to be the “conduit between fiat and Web 3.0 that can facilitate widespread adoption of a payment system.”
During their conversation, the PayPal Executive acknowledged that the widespread adoption of stablecoin could take months or even years. In the meantime, Democratic congresswoman Maxine Waters expressed concern about introducing the new PayPal stablecoin in an uncertain crypto regulatory framework.
“Given PayPal’s size and reach, Federal oversight and enforcement of its stablecoin operations is essential to guarantee consumer protections and alleviate financial stability concerns,” she stated.
While beginning with Ethereum, Fernadez stated there is no reason why the stablecoin cannot be adapted to support other chains in the future, a move consistent with its diversity vision.
