Payment service provider PayPal announced yesterday that it will launch its own cryptocurrency called PayPal USD (PYUSD), which is based on the decentralized blockchain platform Ethereum.
The cryptocurrency is a so-called “stablecoin,” meaning that in the case of PYUSD, its value is tied to the U.S. dollar. As a stablecoin, PYUSD’s value is expected to always be linked to the value of the dollar. This means that its value will not fluctuate to the same extent as, for example, bitcoin and other cryptocurrencies that are not tied to any traditional currency or asset.
PYUSD can be used to send money through PayPal as well as to other cryptocurrency wallets that support PYUSD. It can also be used for payments at e-commerce merchants and other entities that accept the currency. PayPal will also facilitate exchanges between PYUSD and other cryptocurrencies that they currently support.