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“Their effects are still difficult to assess”

Following the announcement of the launch of PYUSD, PayPal’s USD-pegged stablecoin, impressions are expressed by ecosystem members who speak about the potential impact of this fact on the cryptocurrency sector.

And while most agree that the potential impact of PayPal’s new stablecoin on payments and the industry is still difficult to gauge, most view the company’s move as a positive. This while some believe it would be more of the same and others We anticipate a significant impact on the regulatory landscape. There are also those who They fear the effects of centralization in wealth management.

One of the first people to voice his opinion is Paolo Ardoino, CTO of Tether, who affirms this with the new stablecoin expects no impact on USDT, his company’s stablecoin, as PayPal will initially focus on the US market. With that in mind, however, it’s worth noting that PYUSD can be used anywhere in the world over the Ethereum network.

However, should PYUSD expand internationally, it would be “a positive event for the digital currency industry in general,” although it would hurt competition from Tether.

“Another stablecoin in the US could lead to a drop in payments revenue, which is driving Mastercard and Visa in particular.” explained Ardoino to a media company. He added that this will also contribute to the growth of the industry will push for sensible regulations.

Taking a different stance was David Wells, CEO of Enclave Markets, who is not yet fully clear on the impact of PayPal’s stablecoin on USD Coin (USDC).

Wells, who was product lead for Paxos Dollar (USDP) and Binance USD (BUSD), points out that it is not yet known if PYUSD will be listed on major exchanges, so it may In the beginning, the stablecoin only focused on cross-platform payments. “In the long term, it will compete with USDC for market share in cryptocurrency trading, potentially in DeFi markets,” he said.

Regulatory Implications: PayPal faces the spirit of Diem

The US legislature has also decided on the new currency. Standing out is the announcement by House Financial Services Committee Chairman Patrick McHenry, who is known for his pro-Bitcoin stance. Following PayPal’s decision, the Republican representative for the state of North Carolina emphasized the need to pass legislation to regulate stablecoins.

“This announcement is a clear signal that if stablecoins are issued under a clear regulatory framework, we consider it a pillar of our payment system of the 21st century«, said McHenry it is a statement.

Mc Henry recalled that the committee made progress on a regulatory framework for stablecoins as early as late last month. This is a proposal in his opinion will protect consumers Creating federal barriers while fostering innovation.

“We are currently at a crossroads to keep America at the forefront of digital asset innovation. Congress is making significant, bipartisan strides on legislation to ensure the country leads the financial system of the future. “We have to finish the job,” added McHenry.

However, Maxine Waters, a representative of the California Democrats and former chair of the committee, said expressed concern Because Companies like Amazon and Facebook (now Meta) could issue their own coins digital, in accordance with the principles of McHenry Law.

Rep. Maxine Waters, D-California, brought to light fears about stablecoins. Spring: Wikipedia

With his statements, Waters brought old ghosts to light and recalled the crusade that most of the world’s regulators started in 2019. when Meta announced the launch of its own coin (Pound, later renamed Diem).

To this topic speak Earlier this year, PayPal’s senior vice president of cryptocurrencies and digital currencies, José Fernández da Ponte, was announced. As reported in CriptoNoticias, the CEO made the statement shortly after the company announced its plans with the stablecoin.

Fernández emphasized at the time that if the company launched the stablecoin, I would do it by working with regulators. An approach aimed at preventing the authorities from condemning the project as they did with the Meta-Plan.

A nudge for acceptance

In terms of adoption, there are some who believe the PayPal stablecoin can do it increase public interest in cryptocurrencies, leading traditional banking and payment institutions to explore the sector. It’s the vision of Marwan Forzley, CEO of payments platform Veem.

Forsley takes into account that traditional financial firms serve users who don’t typically handle cryptocurrencies, leaving PayPal users exposed to these types of assets could attract the attention of these customers.

Max Galka, CEO of blockchain search engine Elementus, endorses this idea, noting that when a globally recognized platform supports cryptocurrencies, stablecoins enter an “area of ​​trust for a large segment of the population.”

Fear of over-centralization

But also beyond the positive vision that many express about the new stablecoin There are those who show their fears. The Twitter sections were the stage to talk about the doubts created by the centralization of PYUSD.

The cryptocurrency investor who identifies as the wolf of the streets Comment the following: “If you’re worried that Paypal’s new stablecoin is too centralized (of course) and that they have too much control (of course), then don’t use it.”

Concerns also relate to the possibility that PayPal Users can freeze their assets or prevent them from mobilizing.A weakness that mention, that Youtuber and trader David Batagglia showing that the source code allows it.

David Battaglia on Twitter: “GM! The new @PayPal currency 💩💩💩 🖕, as we see in the source code, allows freezing and deleting funds at will. Escape these idiots with #bitcoin/X

It Amplify the tweet from Tech with Catalina, comments on one of the features built into the stablecoin that can settle balances in 2 transactions.

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