It never fails that crypto is ahead of the game while governments and businesses try and trash talk it only to try and adopt it themselves. Yet again there is another case of this from Paypal called the PYUSD a US dollar backed stablecoin.
*Image pulled from Yahoo Finance
Personally I stopped using paypal I would say roughly 5 years or longer ago. With their constant attacks on small business and locking out accounts with no warning and then holding on to those funds for 6 months before they got released was enough for me to find alternatives early before it happened to me.
Still to this day paypal flag legitimate businesses and accounts shutting them down and unless you jump through hoops it's pretty much impossible to ever get your account reinstated.
Paypals stock was rather stagnate for a long time but blew up in 2019 to 2021 during the lock down where everyone was buying online. It didn't take long however for the stock to return to it's junk values and still continues to fall to this day.
Many people I know end up using Paypal as a last ditch method and rather work with other payment providers instead. In fact paypal got really grump when people starting to buy crypto with their paypal funds. Only to now do a 180 and start their own stablecoin.
This is because the company was hurting, many companies are and we see this in all aspects in life now where crypto has always been the future. I knew it back in 2012 a year after I started to mine it and learn about it. Just look at the stock price. No dividend and the stocks done pretty much nothing for years except for a quick lucky draw with the covid lockdowns.
The first stablecoins to be released ever was all the way back in 2014 as bitUSD and Nubits. They where collateralized through other cryptos instead of fiat much like we kind of see today with hives HBD.
From there was the release of the more famous version called USDT or Tether which has had a rather rocky history in terms of audits. However the company is starting to become a little more clean and transparent but not fully. This is most likely because they took the USD at the start and invested customers funds into some rather risky things that luckily paid off in a big way. In fact Tether is announcing some serious record breaking profit numbers as of late and might have been what is started to spark companies to now launch their own stable coins.
The other major players would be USDT and USDC which are rather solid but they are still unregulated but have also become more transparent. These stable coin assets end up being massive money makers for these companies and it makes me think how can we start doing that for HBD which benefits all of the hive ecosystem?
The first REGULATED stablecoin is PYUSD which is Paypals first stable coin. and yes you heard that right the FIRST REGULATED stablecoin which means there is no risk of bankruptcy like we have seen with LUNA for example. At least that's what they say on paper.
Paypal has announced that the reserves will be held into U.S treasury bills which are paying out a rather nice percentage at the moment. The interest earned will be funds for Paypal and Paxos.
Have a billion dollars extra laying around like these mega companies? Buy a U.S treasury bill at 5% is a nice 50 million dollar profit per year. The real kicker is these stablecoin companies most likely have multi billions which they can invest and earn this staging high rate. This is causing companies to become even strong while the government becomes weaker.
Now personally I wont be touching this token with a 10 foot poll but that doesn't mean other investors wont. What will be the thing to watch is how much real exposure Paypals new stablecoin gets in the markets. Will it be interested into DeFi platforms?, in normal trades and swaps or will it simply be limited to paypal.
These next steps will be interesting and start showing us if this is a pivotal moment for crypto or just a lot of hot air.
