Financial transaction company PayPal on Monday launched a stablecoin equivalent to one dollar, in an effort to boost reliance on digital currencies for payments and money transfers.
The firm said the stablecoin, which will be gradually made available starting in the United States, is backed by dollar deposits and short-term US Treasury bonds, and will be issued by Paxos Trust.
Reuters reported that PayPal shares rose 1.4% to $63.66, after the announcement of the new digital currency.
Stablecoins are digital currencies pegged to another asset such as the dollar or precious metals, designed to protect against extreme volatility that makes it difficult to use digital assets for payments, or as a store of value.
Stable currencies differ from other digital currencies such as “Bitcoin” in that they are stable in value, while the second is highly volatile, and it also represents a bridge between real paper currencies and encrypted currencies.
2023-08-08 11:07:40
#PayPal #launches #dollar #stablecoin #boost #adoption #cryptocurrencies
