If it was actually "backed by deposits" then you wouldn't need it. You would simply transfer those "deposits" around.
So what they're actually doing is bypassing banking legislation and attempting to do fractional reserve banking with no licence. They're also trying to bypass official currency and counterfeit their own shit. People need to start doing time for this because it is ridiculous that these clowns think they can just skip past a thousand years of legislation. Minting your own coins? People used to get beheaded for this.
The currency is regulated by NYDFS which has specific regulations for how stablecoins must be backed. TL;DR: 1:1 backing by T-bills and deposit accounts at regulated banks. There is certainly fractional reserve banking going on within those depository banks, but not specifically by PayPal. https://www.dfs.ny.gov/industry_guidance/industry_letters/il...
> Who else read PYUSD as "pie-usd" intuiting something like "Python USD"... "pip install pyusd"
Honestly? Probably no one, but I like here your head is going; money as code is something that we in the Bitcoin community have been advocating since it's inception. People need to understand that money has to evolve, and that the current system is as archaic as the massive computing machines that occupied entire warehouses in comparison to where we are in terms of computing power and advancement.
If seen from a purely technological lens: fiat is a Luddite's folly.
Personally, I think that the stablecoin behind Paypal must be seen in the same lens as Zuckbucks (Libra) but it is shifting the POV that the majority 85% of the population that you can in fact have systems which not only allows for 24/7 transactions (I doubt Thiel-bucks will be seamless given my experience with Paypal mafia) but they also allow for Bitcoin to enter as the leader of the paradigm shift.
Honestly, if Thiel has done it as this point--an entrenched fossil in terms of fintech--you HN stragglers need to realize that this is where money is going, whether you like it or not at this point.
Web 3.0 and NFT BS always were VC's COVID rug pull, cash grab with cheap money; however, that doesn't mean the underlying tech we've built isn't sound and slowly taking over the financial system (the way some of us in this for 10+ years always wanted it) as Blackrock, who has more assets under management than God, is getting close to it's Bitcoin ETF and the SEC saying anything but Bitcoin is a security etc...
With that said, I honestly envision a World with competing non-nation State fiat currencies is now inevitable; Global inflation is now at unpayable levels and will continue to de-value as the Geo-political and environmental situation intensifies, despite our best attempts.
What becomes of this is where the real experimental design runs at it's simulation limits, so it will be interesting to see what happens from here.
Really "stable coins" are what I would call an attractive nuisance for theft as they call for money sitting around doing nothing "for later" makes a very tempting target. The cryptocurrency space is absolutely loaded with such things. See the number of "banks" and exchanges which suffered from a case of "take the money and run".
This seems like yet another ERC-20 stablecoin with no special "quirks", from a quick reading. My question is, what is the reason for this to exist over existing stablecoins that have much broader acceptance and long history (for crypto anyway), e.g. USDC/USDT?
Oh, they exist so they can throw their peg and crash losing 99 percent of their value while the company or individuals responsible tell their users not to worry and that it is totally under control.
Kind of depends on PayPal’s implementation details, but it’s still quite painful to transfer assets between web3 and the traditional financial system. If it’s easy to transfer pyusd from PayPal to a private ethereum wallet and vice versa, it could potentially be an easier way to move usd in and out of crypto.
Of course this probably won’t happen for regulatory reasons, and even if it does pyusd may have the same type of blacklisting that prevents many dapps from using usdc.
Utility. PayPal claims they will allow payments to be done in this if the user wants to. Let's say someone holds 20 PYUSD and he reaches the checkout page of an item costing $10. He should be able to use 10 PYUSD to buy that item. PayPal will also allow free conversion between PYUSD and PayPal balance. So crypto folks finally have something that can actually be used IRL.
Easy on and off ramp to paypal? Thus existing solely for benefit of paypal.
Paypal getting their cut from crypto market and spenders there... Maybe some crypto-users thinking that them trading for these coins and then using them to buy stuff is finally real world adoption...
you do not, it is useful for contracts between payments companies, and directly increases the assets of PayPal Corp. Basically you are a pebble on the beach, and these people want to create new kinds of automatable sand-movers.
If paypal can make these "gold coins" look like real coins then they can freely mint their own coins and trade them for real assets. When people cut them open and find that they are made of lead then it will be too late, the owners will be long gone.
It also lets them take real money off you and give you casino chips that you can send around. The chips are meaningless so they never actually have to give your real money back as long as they stay in the casino. If you do ask for them back, they've been collecting interest on them the whole time so they'll double up either way.
Hopefully this will allow you to offboard crypto easier.
A lot of banks don't want to take incoming transfers if they see that they are from a crypto affiliated entity/bank, now you can (hopefully) have exchange wallet on binance/etc you want to cash otu -> Buy PaypalUsd on exchange -> Send PaypalUSD to PayPal account -> Swap stable for cash -> Send it out from Paypal account to normal account or keep it there. Again thats assuming Paypal plays ball with these exchanges.
So I guess any fee will basically be you paying Paypal to launder "crypto exposure" for you when moving back to fiat. The biggest way to make money in crypto right now is to figure out an offramp with capacity. There is a lot of people who have way too much crypto and want to offramp into fiat but can't.
MagicMoonlight|2 years ago
So what they're actually doing is bypassing banking legislation and attempting to do fractional reserve banking with no licence. They're also trying to bypass official currency and counterfeit their own shit. People need to start doing time for this because it is ridiculous that these clowns think they can just skip past a thousand years of legislation. Minting your own coins? People used to get beheaded for this.
matthewdgreen|2 years ago
yrhrodka|2 years ago
[deleted]
Gormisdomai|2 years ago
kelvie|2 years ago
botanical|2 years ago
https://c212.net/c/link/?t=0&l=en&o=3937494-1&h=2086543002&u...
matt3210|2 years ago
Melting_Harps|2 years ago
Honestly? Probably no one, but I like here your head is going; money as code is something that we in the Bitcoin community have been advocating since it's inception. People need to understand that money has to evolve, and that the current system is as archaic as the massive computing machines that occupied entire warehouses in comparison to where we are in terms of computing power and advancement.
If seen from a purely technological lens: fiat is a Luddite's folly.
Personally, I think that the stablecoin behind Paypal must be seen in the same lens as Zuckbucks (Libra) but it is shifting the POV that the majority 85% of the population that you can in fact have systems which not only allows for 24/7 transactions (I doubt Thiel-bucks will be seamless given my experience with Paypal mafia) but they also allow for Bitcoin to enter as the leader of the paradigm shift.
Honestly, if Thiel has done it as this point--an entrenched fossil in terms of fintech--you HN stragglers need to realize that this is where money is going, whether you like it or not at this point.
Web 3.0 and NFT BS always were VC's COVID rug pull, cash grab with cheap money; however, that doesn't mean the underlying tech we've built isn't sound and slowly taking over the financial system (the way some of us in this for 10+ years always wanted it) as Blackrock, who has more assets under management than God, is getting close to it's Bitcoin ETF and the SEC saying anything but Bitcoin is a security etc...
With that said, I honestly envision a World with competing non-nation State fiat currencies is now inevitable; Global inflation is now at unpayable levels and will continue to de-value as the Geo-political and environmental situation intensifies, despite our best attempts.
What becomes of this is where the real experimental design runs at it's simulation limits, so it will be interesting to see what happens from here.
kelseyfrog|2 years ago
schemescape|2 years ago
Are you thinking of algorithmic stablecoins?
Nasrudith|2 years ago
unknown|2 years ago
[deleted]
xhkkffbf|2 years ago
https://twitter.com/pashovkrum/status/1688591468498239496
Is this something that's necessary? Or is it just very dangerous.
janejeon|2 years ago
happytiger|2 years ago
simple-thoughts|2 years ago
Of course this probably won’t happen for regulatory reasons, and even if it does pyusd may have the same type of blacklisting that prevents many dapps from using usdc.
thumbuddy|2 years ago
tock|2 years ago
Ekaros|2 years ago
Paypal getting their cut from crypto market and spenders there... Maybe some crypto-users thinking that them trading for these coins and then using them to buy stuff is finally real world adoption...
Ekaros|2 years ago
mistrial9|2 years ago
spicybright|2 years ago
I ask because crypto transfer fees for bitcoin/eth are ridiculous if you're not transferring thousands of dollars at a time.
And if paypal is the one exchanging/holding your USD, crypto or not, why pay that fee?
MagicMoonlight|2 years ago
It also lets them take real money off you and give you casino chips that you can send around. The chips are meaningless so they never actually have to give your real money back as long as they stay in the casino. If you do ask for them back, they've been collecting interest on them the whole time so they'll double up either way.
mamonster|2 years ago
A lot of banks don't want to take incoming transfers if they see that they are from a crypto affiliated entity/bank, now you can (hopefully) have exchange wallet on binance/etc you want to cash otu -> Buy PaypalUsd on exchange -> Send PaypalUSD to PayPal account -> Swap stable for cash -> Send it out from Paypal account to normal account or keep it there. Again thats assuming Paypal plays ball with these exchanges.
So I guess any fee will basically be you paying Paypal to launder "crypto exposure" for you when moving back to fiat. The biggest way to make money in crypto right now is to figure out an offramp with capacity. There is a lot of people who have way too much crypto and want to offramp into fiat but can't.
3np|2 years ago
ETH_start|2 years ago
https://l2fees.info/
HtmlProgrammer|2 years ago
Will it eventually be the case that these platforms start throwing anti competitive lawsuits at each other for not supporting THEIR stable coin?
It’s a smart move by PayPal anyway, people funnel their dollars to them, they collect a nice little interest payment via bonds.
onetokeoverthe|2 years ago
[deleted]