PayPal recently shocked the world by announcing it would be creating its own stable currency atop the Ethereum network. As a result, several digital currencies are beginning to show signs of life, and price jumps have occurred for major assets over a 24-hour period. Also, crypto investor Charlie Shrem says that the news is going to help launch bitcoin into a new stratosphere and boost Ethereum’s timetable.
Charlie Shrem is Proud of PayPal
Shrem stated on social media:
PayPal launching a stablecoin will skyrocket bitcoin to at least $250,000 faster than it was supposed to, and Ethereum likely will ten times on a faster timetable. Very exciting.
The idea that bitcoin will suddenly jump to $250K is a unique one. This means that the world’s number one digital currency would need to expand its market cap to about $5 trillion. While this isn’t impossible (we’ve seen anything and everything happen in the world of crypto), it may take some time for this to happen, and it’s possible Shrem is suggesting that the PayPal news is simply the starting point in what will be a long line of changes in the crypto world that could cause BTC to hike exponentially.
In any case, while it may not seem like much now, the news surrounding PayPal and its new stable currency is being lauded by players in the digital currency arena everywhere. Grzegorz Drozdz – a market analyst at Conotoxia – commented in a recent interview:
Stable coins are of particular importance for the cryptocurrency market as a whole, as they reflect the amount of money in the market. If the number of stable coins is decreasing, we may see a decline in the available money in circulation, which has a negative impact on, among other things, the potential for bitcoin to rise. A change in this trend could be a strong indicator for the start of a new bull market.
The new stable coin is going to be called PayPal USD or PYUSD. It is backed by the U.S. dollar and can be either purchased or sold through the PayPal app, though a buying and selling feature will soon appear on Venmo. It is being issued by the New York-based company Paxos Trust, which also created Binance’s stable asset Binance USD (BUSD).
A Strong History with Crypto?
To be fair, it’s not like this is the first time PayPal has entered the digital arena. For example, the company’s former executive David Marcus helped – or at least tried to help – bring Facebook’s stable currency project Libra to life, though in many ways, these efforts were in vain, as Libra eventually vanished without ever making it to market.
In addition, players have been able to store, sell, and hold crypto assets in their PayPal accounts for some time now.
