By The Opinion
05 Oct 2024, 18:46 PM EDT
PayPal has taken an important step in its foray into the world of cryptocurrencies by making its first commercial transaction using PYUSD. This digital currency, launched in August 2023, is backed by dollar assets and aims to offer a more stable alternative in the cryptocurrency market, known for its volatility.
SAP’s platform, called digital currency hub, allows businesses to make and receive digital payments instantly, available 24 hours a day.
The online payments giant confirmed that the transaction was carried out in collaboration with a retail company that accepted PYUSD as a form of payment. This operation marks a milestone in PayPal’s attempt to integrate cryptocurrencies more seamlessly into its platform, allowing users to make payments easily and reliably without the worry of extreme fluctuations in value that characterize other cryptocurrencies such as Bitcoin or Ethereum.
The PYUSD is designed to offer greater stability by being pegged to the value of the US dollar, making it easier to adopt in commercial transactions. The stablecoin is issued by Paxos Trust Company, a regulated entity in the US, and has been authorized to operate within the PayPal and Venmo platforms, giving users the ability to buy, sell, and hold cryptocurrencies more accessible.
This move by PayPal highlights the growing trend of large technology companies adopting cryptocurrencies as part of their financial services. Although the use of cryptocurrencies remains a topic of debate due to their regulation and security, PayPal’s initiative could facilitate their integration into the conventional financial system.
The PYUSD transaction demonstrates how PayPal continues to innovate in the digital payments sector and its long-term vision to position itself as a leader in the adoption of cryptocurrencies within global commerce.