PayPal launches its own U.S. dollar-backed stablecoin | Hacker News Reader

PayPal launches its own U.S. dollar-backed stablecoin

finance.yahoo.com

49 pointsLeoPanthera26 comments

I wouldn't trust paypal with anything. they cancelled my account after bein used 18 years. something flagged it and they just cancelled me with no recourse.

friends don't let friends use paypal.

Friends definitely do not let friends use PayPal.

Experience the upvotes my friend.

It's only "dollar-backed" if PayPal guarantees to convert the coin to dollars on demand. Anything short of that is marketing.

PayPal sees the writing on the wall with FedNow. Desperately attempting to remain relevant when the Fed provides instant payment and value movement rails. They'll attempt to skim off their stablecoin transactions and keep value on their platform vs at banks, credit unions, or brokerages:

> Customers will be able to use PYUSD to purchase products, send from person-to-person, transfer to other wallets, and can be converted to or from other cryptocurrencies that PayPal supports.

> Desperately attempting to remain relevant when the Fed provides instant payment and value movement rails.

How exactly?

FedNow doesn't work outside of the US.

>FedNow doesn't work outside of the US.

And Europe has IBAN transfers, which didn't kill Paypal.

Although I am not quite sure why paypal hasn't been killed. Using my bank account is almost always as simple as paypal and most stores offer some form of it.

I have been in the EU a lot over the last few years and no one I know uses anything but direct bank transfers.

I don’t think any of my EU friends have a paypal account.

I don't think you have been to France. I am french, and I use Paypal all the time because I don't want to give my CC numbers and a majority of online store offer Paypal as an option to pay. Direct Bank transfer to pay online is not widely offered.

I have not spent much time in France, and I guess that use Apple Pay to accomplish the same goal of not sharing credit cards.

I'm from the USA but been living in Spain for ages, and I'm the only one I know that uses PayPal. Everyone does bank transfer.

Depends on the country. In Poland, most banks use a standardized interbank instant cheque system which is integrated with your phone number, and everyone would use that for settling small sums between each other. Sweden has a similar system that's even more flexible.

Meanwhile, German banks offer a similar solution (giropay), yet - in this privacy-obsessed society - everyone uses PayPal instead.

>yet - in this privacy-obsessed society - everyone uses PayPal instead.

I don't get why to be honest. Banks are far more regulated than Paypal...

I know someone who uses it because they can't get a bank account. If you're unbanked, your options are pretty limited.

Can you share why they can’t get a bank account?

I don't know the details, unfortunately, but I know it's connected to a financial disaster they suffered.

It's not as rare as you might think, though. 4.5% of US households are unbanked.

Valid reason I guess. Being unbanked should certainly be illegal.

A twitter user has caught that the smart contract for their coin allows them to freeze accounts and burn the tokens.

https://twitter.com/pashovkrum/status/1688591468498239496?t=...

More discussion over on the official post: https://news.ycombinator.com/item?id=37041992

I really don't see the value proposition for yet another stablecoin.

The only reason I was using PayPal is so that I didn't have to provide my credit card number to merchants while purchasing online. Now with single-use CC numbers, I haven't used PayPal for a few years.

What am I missing?

What for?

"I can haz transaction fees too?"

Details will be coming, but it sounds like Paypal's stable coin will have no yield.

Holding money for people, while paying them no yield in the current interest environment, would be hugely lucrative.

I can't think of any successful stable coins that offer yield on their own. DAI in a round-about way, I guess?

Seems like it would be relatively trivial to dump pyUSD into a Curve pool which would generate yield for pyUSD HODLers (among a myriad of other ways that pyUSD could be used to generate yield).

It’s just slightly avoiding being a criminal act with the terms and conditions I guess.

We take your money and earn interest while giving you… nothing?

What the hell is going on?

PayPal is still around? Avoid like the plague my friends

I'm sure this will end well.

Reply on news.ycombinator.com