PayPal recently launched a U.S. dollar-backed stablecoin called PayPal USD (PYUSD) Aug. 7. Some members of the cryptocurrency community are optimistic the new stablecoin will prove beneficial, while others are concerned PYUSD may be paving the way for a central bank digital currency (CDBC).
"Today, we’re unveiling a new stablecoin, PayPal USD (PYUSD)," PayPal said in a post on X, formerly known as Twitter. "It’s designed for payments and is backed by highly liquid and secure assets. Starting today and rolling out in the next few weeks, you’ll be able to buy, sell, hold and transfer PYUSD."
PYUSD is "designed to maintain a stable $1 USD value," according to PayPal's website. "It’s backed by dollar deposits, U.S. treasuries and cash equivalents."
The website said the new stablecoin can be held on PayPal's app or website and can be traded with others in the U.S. for free. Users can utilize PYUSD to purchase other cryptocurrencies supported by PayPal or to check out at "millions" of virtual retailers. PayPal reported stablecoins "can provide inclusive, broad access to the financial system, and can enable fast and efficient money movement."
One pseudonymous X user told their 32,200 followers that their "unpopular opinion" is that PYUSD "is a good thing for crypto." They noted critics are highlighting PayPal's ability to freeze transactions, and pointed out other stablecoin platforms have the same functionality.
"PayPal is a Web2 giant that can create a bridge to Web3" and can help crypto users convert their earnings to fiat currency, the post said. They suggested if PYUSD is successful, it could "encourage other giants to start seriously considering crypto. That will set off a domino effect that will ultimately change our lives."
Crypto influencer Layah Heilpern, author of "Undressing Bitcoin," told her followers she sees PYUSD as a step towards a CBDC, in a post on X.
"I absolutely would not touch this and would advise you to do the same," Heilpern said in the post. "This is how they discreetly bring about a CBDC. Money big tech can turn on and off if they don't like your opinion."
