PayPal Launches PYUSD, Marking a Turning Point in Blockchain History

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PayPal Launches PYUSD, Marking a Turning Point in Blockchain History

Innovation distinguishes between a leader and a follower. – Steve Jobs

On August 7, 2023, PayPal made a groundbreaking announcement: the launch of PYUSD. This momentous event marks a turning point in blockchain history, as it is the first time a major payments company has invested in blockchain technology. This move signals a shift away from the more crypto for crypto mentality that has been prevalent in the industry, and towards a more open, many-to-many interface for exchanging value without the need for a centralized intermediary.

PYUSD brings the original promise of blockchain to life: the ability for two-legged humans anywhere in the world to send value to each other without relying on banks or other centralized counterparties. This platform erodes monopolies and gives people the power to form their own financial connections.

The value of a blockchain is unlocked when it is used in the real world. This is where PYUSD comes in: it can be sent to relatives, vendors, or employees anywhere in the world, and can be cashed out through traditional rails. This is a major difference from previous stablecoins, as PYUSD can become a PayPal balance. This increases liquidity and options, and PayPal is building on Ethereum with the NYDFS standard for stablecoins.

The adoption of blockchain and faster, cheaper, safer transactions will grow due to this fundamental shift. PayPal’s move is a call to action for positive technological progress, and a warning to those who thought this would just go away. PYUSD is likely the first true web 2.5 company in the world, bringing blockchain and finance together at a scale that has previously been unachievable.