What is PayPal USD and How Does It Work

Understanding PayPal USD (PYUSD)

PayPal introduced its own stablecoin, PayPal USD (PYUSD), designed for individuals seeking stability amidst the volatility of other cryptocurrencies.

PYUSD functions as PayPal's stablecoin, primarily intended to facilitate seamless virtual payments, specifically in the blockchain ecosystem . Currently only accessible to eligible PayPal users in the United States, PYUSD offers distinctive features, including the ability to exchange it for fiat currency through a direct conversion process within the PayPal platform.

Basically, PayPal USD is a stablecoin pegged to the value of the US dollar. Stablecoins are a type of cryptocurrency that is pegged to the value of a fiat currency. PYUSD is fully backed by USD deposits, short-term US bonds, and similar cash equivalents, ensuring its stability even amidst cryptocurrency market fluctuations.

To earn PYUSD, eligible PayPal customers can buy or sell the stablecoin through the PayPal app or website. Notably, PYUSD transactions are accepted in online stores that support PayPal USD transactions, indicating its potential application in the consumer payments sector. Additionally, users can transfer PYUSD to compatible cryptocurrency wallets, such as Coinbase Wallet and MetaMask.

Benefits for Qualified PayPal Users in the US

Eligible PayPal users in the US can use PYUSD to purchase other cryptocurrencies supported by PayPal, including Bitcoin (BTC), Bitcoin Cash (BCH), Ether (ETH), and Litecoin (LTC).

Sending PYUSD funds to another PayPal user is free of charge, while fees apply to conversions between PYUSD and other cryptocurrencies, online purchases, and withdrawals. PayPal ensures transparency by disclosing fees to users during the crypto trading or payment process.

The Motivation Behind PayPal's Cryptocurrency Venture

By introducing its stablecoin, PayPal aims to enter the growing cryptocurrency market. PYUSD is positioned to facilitate fast fund transfers for a variety of purposes, such as remittances, and is slated to integrate with Web3 environments, including Venmo.

Web3 , heralded as the next generation of the internet, operates on blockchain technology, with cryptocurrencies playing an important role in facilitating transactions in this ecosystem. PayPal's support for Web3 is in line with its strategic position to play a critical role in the evolving internet landscape.

PYUSD, an ERC-20 token, is poised to be accepted by a growing community of external developers and integrated into a variety of Web3 applications, especially those built on the Ethereum blockchain.

Regulated Products and Control

Managed by Paxos Trust Company, a regulated blockchain infrastructure company under the supervision of the New York State Department of Financial Services (NYDFS), PayPal USD ensures regulatory compliance and transparency.

Starting September 2023, Paxos will publish a monthly Reserve Report for PYUSD, publicly detailing its reserve components. Additionally, third-party validation of PayPal USD reserve holdings will be conducted by an impartial accounting firm in compliance with standards set by the American Institute of Certified Public Accountants, to ensure accountability and transparency in its operations.

How To Buy Crypto With Bittime

You can buy and sell crypto assets in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

Learn How to Buy Crypto on Bittime.

Monitor price chart movements of Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.

Also Read:

What is First Digital USD (FDUSD)? Listen to the explanation!

Getting to Know Binance USD (BUSD): History and How It Works

Get to know USD vs USDT? Read the review

DISCLAIMER : This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.