Transferred Cryptocurrency Services Broaden: Incorporating Bitcoin, Ethereum, and Stablecoins within Peer-to-Peer PayPal Exchange
PayPal has announced an expansion of its peer-to-peer (P2P) ecosystem, now allowing users to send and receive cryptocurrencies and stablecoins. This move is part of a larger trend in which legacy payment systems are embracing stablecoins due to their cheaper and faster nature.
The supported crypto assets include Bitcoin and Ethereum, as well as PayPal's own stablecoin, PYUSD. As of press time, PYUSD is the 10th largest stablecoin by market cap ($1.25 billion), with USDC holding a market size of $72 billion (second-largest), and USDT topping the list with $170B.
David Weber, head of PYUSD, noted that the update would 'bring in non-crypto users.' The aim is to make it as easy to send money as sending texts or emails, and to attract those who may not yet be familiar with cryptocurrencies.
The expansion also includes the ability to send money to PayPal, Venmo, and crypto wallets. This could significantly simplify and globalize digital money transfers linked to everyday conversations and interactions.
The World Bank has estimated that stablecoins could cut high remittance costs by over 90%. Cross-border payment corridors in parts of Africa and Asia can cost up to 12% and take over three days to settle via legacy payment rails.
Other companies adopting or planning to roll out stablecoin and crypto support include Stripe, Visa, Western Union, and MoneyGram. Binance Pay, Bybit Pay, and Kraken crypto exchange have also expanded to the cross-border payment segment, thanks to stablecoin adoption.
This move by PayPal is a significant step towards integrating cryptocurrencies and stablecoins into mainstream finance. As the market continues to grow, with the overall market close to hitting $290 billion for the first time, with about +$40 billion growth over the same period, it's clear that stablecoins are becoming a popular choice for remittances.
However, it remains unclear whether other rival stablecoins will be supported on PayPal's P2P apart from PYUSD. Kraken's 'Krak' supports stablecoins from USDC and USDT, but the details regarding PayPal's support for other stablecoins are yet to be announced.
In conclusion, PayPal's expansion of its P2P ecosystem is a significant stride in the integration of cryptocurrencies and stablecoins into mainstream finance. This move is expected to make sending and receiving digital currencies as easy as sending texts or emails, and could potentially attract a large number of non-crypto users.
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