The Facts
PayPal has launched its first stablecoin cryptocurrency, called PayPal USD (PYUSD), which will be backed by the value of the US dollar to "reduce friction" for virtual payments and provide faster, cheaper money transfers across borders.
PYUSD will be applicable for person-to-person payments, to fund purchases at checkouts, and to transfer funds between PayPal and other outside wallets. Currencies supported by PayPal will also be convertible to and from PYUSD.
The Spin
Narrative A
Though past stablecoins have certainly not being entirely successful, PayPal, which has a history in the crypto world, will help bring legitimacy to the emerging financial industry as the company will be cautious amid regulatory suspicion, as well as back the coin with the reliable dollar. Consumers can now have faith in the privacy and stability of banking with crypto.
Narrative B
While PayPal may bring some nominal legitimacy to this young industry, we can't forget the fact that Facebook has already tried and abandoned its own stablecoin, and PayPal itself has previously paused its launch due to regulatory pushback. No one can put all their eggs in the stablecoin basket until the both the private and public sectors can provide evidence of its safety.