Tether pioneer William Quigley, who was also an early investor in PayPal, said he doubts the payments giant will bring much innovation to the stablecoin space.
Enter PayPal announcing the launch of PYUSD, a proprietary stablecoin backed by the U.S. dollar in early August. On a line-by-line basis in the smart contract’s code, PYUSD presents a litany of problems and vulnerabilities that clash directly with crypto’s decentralized framework. Without addressing these issues now, PayPal opens up Pandora’s box for other institutions to feel as though the rules of crypto don’t apply to them, giving them a license to remake the industry in their image and bulldoze over a well-established community.
Usage has shown a low correlation with crypto exchange volumes, which suggests that significant stablecoin transaction volumes are likely being used for non-speculative purposes, the report said.