If you didn’t hear, Web 2.0 payments juggernaut PayPal has introduced their own stable coin on the blockchain. Things are definitely heating up for the following wave of crypto expansion when this is combined with numerous other recent events in the field. However, I want to focus on the PayPal stablecoin specifically because it’s one of the puzzle pieces that could signal a significant turning point for the way many people use cryptocurrencies. This might make mass adoption more likely.
As someone who uses this technology on a regular basis and who is writing this post, allow me to share everything I know. I’m Richard, and if you’re new around here, I teach people how to master blockchain technology.
Okay, let’s get started with this. Let’s discuss about the debut of stable coin by payment giant PayPal on the blockchain. Just hours have passed since this occurred as I write this piece. At the time this article was being recorded, I discovered that the blockchain had only recently implemented the relevant smart contract. So, a few days after that, this story will be released, and you’ll probably read additional perspectives online about why it’s such a big thing. There are things that are clear, but I want to highlight some less obvious things and things you should be aware of. If you stay around, I’ll also give you a quick tour of the source code and conclude by making some inferences from it.
Let’s first talk briefly about PayPal. You might not be aware that PayPal has existed on the periphery of crypto for a very long time if you’re brand-new to the industry, perhaps in the last year or so. For a long time, PayPal has been a pioneer in this field. Elon Musk co-founded the company, which skyrocketed in popularity along with the growth of eBay and has since commanded a sizable market share as a generic payments network. With roughly 430 million active users at the moment, PayPal has kept improving its platform to hold onto its market share. They have long been at the forefront of the cryptocurrency industry, supporting it in their mobile wallet and introducing it to their platform.
The following development in that direction is this stablecoin. So, what would PayPal be anticipating in the future and how might they be attempting to foresee the next significant cryptocurrency expansion? I’ll share my opinions with you and assist you in making connections.
Let’s make the connections. Currently, the majority of people conceive of the cryptocurrency industry in terms of buying and selling cryptocurrency using mobile apps or exchanges, converting currencies, and sending funds to various wallets for various uses. However, if you stop using cryptocurrency, you frequently have to leave the market in order to use conventional payment methods like credit cards to cover your regular bills. What if, though, PayPal’s stablecoin were to alter that?
What if cryptocurrency turns into a one-way street, preventing you from ever leaving the crypto space? I’ve been describing this concept for a while, and what PayPal is doing could represent the next step in that direction.
Having a stablecoin that can integrate into the cryptocurrency market gives people an on-ramp as PayPal develops. This stablecoin offers the full benefits of being a part of the crypto ecosystem because it can be utilized on decentralized exchanges and other platforms. The problem is to make these digital dollars useful in the real world once users have this utility. People may already use digital payment methods for commonplace purchases thanks to platforms like Venmo.
Stablecoins would be used in these transactions, which would account for a sizable fraction of people’s financial activities where debit or credit cards are not an option. This turns cryptocurrency into a one-way street where you can interact with conventional financial institutions without leaving the area.
This vision might result in crypto taking over the majority of everyday card-based transactions and making it the primary mechanism for financial transactions. PayPal’s action shows that stablecoin regulations are positive as it also addresses regulatory worries over them. Additionally, Ethereum’s position in the market is strengthened by PayPal’s stablecoin implementation on the Ethereum network. This decision might be a decisive spark that tips the scales in favor of widespread adoption.
Taking a look at the actual smart contract code is essential. PayPal’s choice of Ethereum’s ERC20 token standard is significant. The code shows parallels with other stablecoins, like Paxos. Reading through the source code can enhance your skills as a developer and provide insights into how real-world projects operate.
In conclusion, PayPal’s stablecoin launch could be a significant piece of the puzzle to make crypto more accessible, capturing a larger share of people’s financial transactions. This could lead to a scenario where crypto becomes a one-way street, and users don’t have to exit the crypto space for traditional transactions. Additionally, PayPal’s move has implications for stablecoin regulations and Ethereum’s prominence.
Being a part of the change of the crypto world is an opportunity worth investigating.