PayPal and its upcoming stablecoin – will it become easier to buy crypto online?
A few days ago news broke out that PayPal, the popular US fintech company, added a stablecoin to its roster. This move follows the company’s decision last year to allow users to send, receive and transfer popular coins like BTC and ETH.
We at Bintense are constantly monitoring the markets and trying to figure out how the latest developments can impact how people buy crypto online. Today we want to discuss the potential implications of PayPal’s decision, as well as give you a glimpse into the fascinating world of stablecoins.
What is a stablecoin?
A stablecoin is a type of cryptocurrency that’s designed to have a steady value, unlike other cryptocurrencies like Bitcoin, which can be very volatile. It’s like digital money that aims to keep its price close to a real-world asset, such as a traditional currency like the US Dollar or a commodity like gold.
One big benefit of stablecoins is that they offer a more predictable value, which can be useful for everyday transactions and as a store of value. They can also make it easier and faster to send money across borders and can be used for capital placement without the worry of sudden price changes.
This stability makes stablecoins a useful tool for people who want to buy crypto online and use it without the uncertainty that comes with regular cryptocurrencies.
Improving conditions to buy crypto online?
The launch of PayPal USD (PYUSD) stablecoin did attract interest from large fintech companies in the blockchain space. However, when it comes to the broader impact on how you can buy crypto online, we don’t believe major changes will occur.
PYUSD is not a pioneer stablecoin. Many have preceded it, including Tether, USD Coin, DAI and BUSD. Most of the time, these tokens are also backed by the US Dollar, so in terms of the crypto market as a whole, there’s nothing really new here. It may certainly change how you use PayPal, though.
On the flip side, more companies might follow in PayPal’s path and embrace stablecoin blockchain solutions in the near term – thanks to the unexplored potential in the field as well as the ability to enhance productivity, promote transparency and provide options for the unbanked.
Implications for the broader public
Greater optionality is one of the main advantages that lie in digital assets. If you want to buy crypto online, PYUSD is another coin to consider, but the list itself is very long. This token operates on the Ethereum blockchain, issued by a company named Paxos Trust, which specializes in blockchain solutions, among other services.
Additionally, as established fintech companies venture into the blockchain space, traditional crypto brands have greater competition, so they are incentivized to deliver more competitive services to their customer base. Bintense is authorized to provide crypto exchange services, We constantly strive to improve conditions on a regular basis, and aim to offer a suited solution for anyone who is interested in purchasing crypto.
In case you want to dig deeper into the topic of stablecoins, there’s plenty of information about it on the web, as well as in our Bintense blog.
