Altcoin News by Thebittimes.Com

When PayPal launched its US dollar stablecoin on August 7, everyone in the crypto industry noticed. Indeed, the 24-year-old, $68 billion fintech behemoth unveiling PYUSD conferred instant credibility onto the stablecoin industry. However, real-world adoption of PayPal’s stablecoin has been sluggish. PYUSD already faces stiff competition from incumbents.  Older stablecoins might have shady histories yet they benefit from popular brand names, deep liquidity, Lindy effects, listings on many crypto exchanges, and fiat-denominated trading pairs around the world. In short, the debut of PYUSD flopped. It’s barely grown to 0.05% the size of Tether, the world’s oldest stablecoin. PayPal ’s issuer Paxos just published its transparency report, disclosing PYUSD reserves of just $45.3 million as of August 31, 2023. That compares to Tether’s $83.1 billion . PYUSD’s backing includes $43.8 million in US Treasuries plus $1.5 million in cash deposits at insured depository institutions. ...

The Congresswoman added that she was deeply concerned with PayPal launching its stablecoin in the absence of a crypto regulatory framework. “Given PayPal ’s size and reach, Federal oversight and enforcement of its stablecoin operations is essential to guarantee consumer protections and alleviate financial stability concerns,” Waters said in a statement. advertisement Although stablecoins have been in existence for several years, they have not gained significant traction within the mainstream consumer payment landscape. Efforts by prominent non-crypto entities like Meta Platforms to introduce their stablecoins have faced strong resistance from global financial regulators and policymakers. Last month the U.S. House Financial Services Committee also produced a bill in order to establish a regulatory framework for stablecoins. This bill majorly focuses on the rules for the registration and approval process for stablecoin issuers. PayPal to Prolifer...