PayPal Just Announced Plans to Launch a USD Stablecoin - Thoughts? - page 2.

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Quote from: BenCodie on October 04, 2023, 04:02:28 PM

Quote from: bbc.reporter on October 03, 2023, 10:19:02 PM

Quote from: BenCodie on October 02, 2023, 02:26:55 AM

I am surprised that no one has pointed out the fundamental economic flaw with this concept.

If the USD is backed by nothing but faith, confidence, and (arguably) oil....and PayPal is backed by USD... Then what isn't this technically just shit backed by shit?

It's good for cryoto, if it enables people to move from PayPalUSD to cryptocurrency with no limitation. However, limitation is the biggest problem with PayPal. I doubt movement between crypto and PayPal's stablecoin will be seamless or limitless.

The main reason PayPal is doing this is for database integrity via the blockchain ledger, making all payments traceable while reducing the liability and costs involved with the amount of data they process daily. There will probably be a massive scalability boost if the blockchain they use has a reasonable TPS....

Though that's another question. If PayPal is going to make all balances backed by its stablecoin eventually, what chain will it be deployed on and can it keep up with PayPal's TPS?

[1] The USD is backed by the credit of the American government and America's military as what was shown when Saddam Hussien declared that Iraq will begin using the Euro for oil trades. They were invaded only 1 month after this declaration.

[2] Also, many people in the bitcoin community say that the dollar is shit, however, in what currency do we price bitcoin? What are the proposals and how to price bitcoin away from shit?

[3] You also mention that Paypal's stablecoin will be good for the cryptospace if it can be moved in the cryptospace without limtation? According to your words, it is shit. Why would you want more shit in the cryptospace?

Credit is shit. Military is where all the money went, and why the gold standard was eventually abolished. The invasion of Saddam Hussein is only one of many war crimes that the US have committed with the power they have amassed via the fiat money scam.

What better opponent to give Bitcoin than the once unopposed, all powerful reserve currency of the world? As Bitcoin has grown, USD has lost its power. As BTC continues to grow, USD will continue to lose its power. That is what the price truly reflects.

When you convert or redeem PaypalUSD you are able to convert shit to Bitcoin. Just like you can convert USD to BTC. If it's possible, it's another funnel of demand for Bitcoin.

You said that stablecoins are shit backed by American dollars which is also shit. Bitcoin's price is based on dollars and also backed by dollars. The market cannot exist without dollars. Does this imply that bitcoin is also backed by shit also?

You also said that you wish to witness Paypal's stablecoin would make it easier for inflows into bitcoin. This clearly implies a possbility of a pump that might become a bubble if this occurs. However, what would happen if people want to dump their bitcoin because they want dollars?

I will not be a hypocrite and tell everyone that I do not want to witness a big pump on bitcoin, however, mixing idealism with our speculative investments and having a position that say we are better, the other coins have no right to continue might not be a very good position to have.

However, I agree on the argument on stablecoins. I have always speculated that they might have fractionalized already. If the speculation is correct then stablecoins are fractionalized currencies backed by fractionalized currencies hehehehe.

BenCodie

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Quote from: bbc.reporter on October 03, 2023, 10:19:02 PM

Quote from: BenCodie on October 02, 2023, 02:26:55 AM

I am surprised that no one has pointed out the fundamental economic flaw with this concept.

If the USD is backed by nothing but faith, confidence, and (arguably) oil....and PayPal is backed by USD... Then what isn't this technically just shit backed by shit?

It's good for cryoto, if it enables people to move from PayPalUSD to cryptocurrency with no limitation. However, limitation is the biggest problem with PayPal. I doubt movement between crypto and PayPal's stablecoin will be seamless or limitless.

The main reason PayPal is doing this is for database integrity via the blockchain ledger, making all payments traceable while reducing the liability and costs involved with the amount of data they process daily. There will probably be a massive scalability boost if the blockchain they use has a reasonable TPS....

Though that's another question. If PayPal is going to make all balances backed by its stablecoin eventually, what chain will it be deployed on and can it keep up with PayPal's TPS?

[1] The USD is backed by the credit of the American government and America's military as what was shown when Saddam Hussien declared that Iraq will begin using the Euro for oil trades. They were invaded only 1 month after this declaration.

[2] Also, many people in the bitcoin community say that the dollar is shit, however, in what currency do we price bitcoin? What are the proposals and how to price bitcoin away from shit?

[3] You also mention that Paypal's stablecoin will be good for the cryptospace if it can be moved in the cryptospace without limtation? According to your words, it is shit. Why would you want more shit in the cryptospace?

Credit is shit. Military is where all the money went, and why the gold standard was eventually abolished. The invasion of Saddam Hussein is only one of many war crimes that the US have committed with the power they have amassed via the fiat money scam.

What better opponent to give Bitcoin than the once unopposed, all powerful reserve currency of the world? As Bitcoin has grown, USD has lost its power. As BTC continues to grow, USD will continue to lose its power. That is what the price truly reflects.

When you convert or redeem PaypalUSD you are able to convert shit to Bitcoin. Just like you can convert USD to BTC. If it's possible, it's another funnel of demand for Bitcoin.

Quote from: NotATether on October 03, 2023, 07:40:10 AM

Quote from: BenCodie on October 02, 2023, 02:26:55 AM

I am surprised that no one has pointed out the fundamental economic flaw with this concept.

If the USD is backed by nothing but faith, confidence, and (arguably) oil....and PayPal is backed by USD... Then what isn't this technically just shit backed by shit?

You're close. It's dogshit backed by catshit.

Quote

It's good for cryoto, if it enables people to move from PayPalUSD to cryptocurrency with no limitation. However, limitation is the biggest problem with PayPal. I doubt movement between crypto and PayPal's stablecoin will be seamless or limitless.

PayPalUSD is not going to be useful if it is not accepted as a payment method when you click the "Pay with Paypal" button at checkout, so this is more likely just an attempt to make money like the Wall Street banks would do.

Quote

The main reason PayPal is doing this is for database integrity via the blockchain ledger, making all payments traceable while reducing the liability and costs involved with the amount of data they process daily. There will probably be a massive scalability boost if the blockchain they use has a reasonable TPS....

Though that's another question. If PayPal is going to make all balances backed by its stablecoin eventually, what chain will it be deployed on and can it keep up with PayPal's TPS?

If Paypal already has a good TPS with their own proprietary microservices, then why do they need to make a blockchain?

Point 1 & 2, agreed. Point 3, being a stablecoin and using the blockchain is fashionable for businesses. If you do it, you are "on the bleeding edge" so to speak. A blockchain can make systems lighter in weight or replace resource intensive or code heavy components. If setup with the intention of greater control (likely paypal's intention) then it could also allow for better mechanisms in that regard. There's a lot of perks for the business to move to a blockchain and it makes sense, but it doesn't mean that it's good outside of the business in the long run.

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Quote from: BenCodie on October 02, 2023, 02:26:55 AM

I am surprised that no one has pointed out the fundamental economic flaw with this concept.

If the USD is backed by nothing but faith, confidence, and (arguably) oil....and PayPal is backed by USD... Then what isn't this technically just shit backed by shit?

It's good for cryoto, if it enables people to move from PayPalUSD to cryptocurrency with no limitation. However, limitation is the biggest problem with PayPal. I doubt movement between crypto and PayPal's stablecoin will be seamless or limitless.

The main reason PayPal is doing this is for database integrity via the blockchain ledger, making all payments traceable while reducing the liability and costs involved with the amount of data they process daily. There will probably be a massive scalability boost if the blockchain they use has a reasonable TPS....

Though that's another question. If PayPal is going to make all balances backed by its stablecoin eventually, what chain will it be deployed on and can it keep up with PayPal's TPS?

The USD is backed by the credit of the American government and America's military as what was shown when Saddam Hussien declared that Iraq will begin using the Euro for oil trades. They were invaded only 1 month after this declaration.

Also, many people in the bitcoin community say that the dollar is shit, however, in what currency do we price bitcoin? What are the proposals and how to price bitcoin away from shit?

You also mention that Paypal's stablecoin will be good for the cryptospace if it can be moved in the cryptospace without limtation? According to your words, it is shit. Why would you want more shit in the cryptospace?

milewilda

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Quote from: NotATether on October 03, 2023, 07:40:10 AM

Quote from: BenCodie on October 02, 2023, 02:26:55 AM

I am surprised that no one has pointed out the fundamental economic flaw with this concept.

If the USD is backed by nothing but faith, confidence, and (arguably) oil....and PayPal is backed by USD... Then what isn't this technically just shit backed by shit?

You're close. It's dogshit backed by catshit.

Doesnt matter because both things are shit btw. Cheesy

My impression on why Paypal did make their own stable coin? They do really just want to be recognized and trying to go with the waves with crypto trend and since crypto people does know about
those current existing stable coins USDT etc.. then they would just simply attached into it and make them look that they are joining the bandwagon.

People get blinded usually by this is into those people who do love on dealing with traditional things but to those who do give out importance
about decentralization then its just an additional pure shit here on this space.

NotATether

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Quote from: BenCodie on October 02, 2023, 02:26:55 AM

I am surprised that no one has pointed out the fundamental economic flaw with this concept.

If the USD is backed by nothing but faith, confidence, and (arguably) oil....and PayPal is backed by USD... Then what isn't this technically just shit backed by shit?

You're close. It's dogshit backed by catshit.

Quote

It's good for cryoto, if it enables people to move from PayPalUSD to cryptocurrency with no limitation. However, limitation is the biggest problem with PayPal. I doubt movement between crypto and PayPal's stablecoin will be seamless or limitless.

PayPalUSD is not going to be useful if it is not accepted as a payment method when you click the "Pay with Paypal" button at checkout, so this is more likely just an attempt to make money like the Wall Street banks would do.

Quote

The main reason PayPal is doing this is for database integrity via the blockchain ledger, making all payments traceable while reducing the liability and costs involved with the amount of data they process daily. There will probably be a massive scalability boost if the blockchain they use has a reasonable TPS....

Though that's another question. If PayPal is going to make all balances backed by its stablecoin eventually, what chain will it be deployed on and can it keep up with PayPal's TPS?

If Paypal already has a good TPS with their own proprietary microservices, then why do they need to make a blockchain?

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Quote from: PX-Z on August 12, 2023, 06:38:04 PM

It's just another stablecoin hype, i don't think it will be used by many when there are already existing ways to transfer fiat money online. Why fiat, i consider stablecoins as fiat in cryptocurrency form since its centralized. And talking about fees, it will be a hell of fees to transfer sooner when the whole eth blockchain is congested which regularly to happen.

A welcome development by PayPal but they have to create the coin across blockchains and not just ETH as there are many downsides arising from fees and speed. If we have the millions of people currently on the paypal network emptied into the ethereum network, we might be having much more than enough congestion as the network was not made to scale with beyond design capacity. They should adopt the USDT strategy.

BenCodie

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I am surprised that no one has pointed out the fundamental economic flaw with this concept.

If the USD is backed by nothing but faith, confidence, and (arguably) oil....and PayPal is backed by USD... Then what isn't this technically just shit backed by shit?

It's good for cryoto, if it enables people to move from PayPalUSD to cryptocurrency with no limitation. However, limitation is the biggest problem with PayPal. I doubt movement between crypto and PayPal's stablecoin will be seamless or limitless.

The main reason PayPal is doing this is for database integrity via the blockchain ledger, making all payments traceable while reducing the liability and costs involved with the amount of data they process daily. There will probably be a massive scalability boost if the blockchain they use has a reasonable TPS....

Though that's another question. If PayPal is going to make all balances backed by its stablecoin eventually, what chain will it be deployed on and can it keep up with PayPal's TPS?

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Quote from: un_rank on September 30, 2023, 02:22:32 AM

DAI is a much better option to the rest of the stable coins or worse, the CBDCs.

Compared to the centralized stablecoins, yes it is. At least you know that the tokens in your non-custodial wallets are yours and aren't going anywhere without the correct signatures. A different threat, though is de-pegging. You might remember that a few months ago several stableconis got de-pegged, including DAI and USDC. I don't remember if the cause of it was significant loss of liquidity or a breech of some sort.

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- Jay -

Quote from: Pmalek on September 30, 2023, 01:22:06 AM

The freezing of assets is an unfortunate feature of such tokens that will hopefully never be used against ordinary and innocent individuals on the orders of government institutions and those in power.

Hopefully that never happens, but power is known to be abused many of the times.
And we have many corrupt governments around the world who will use any power they have against the ordinary individuals.

DAI is a much better option to the rest of the stable coins or worse, the CBDCs.

- Jay -

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Quote from: NotATether on August 15, 2023, 05:30:53 AM

Quote from: cyrilmorris on August 11, 2023, 12:27:06 AM

This is big news in the cryptocurrency space. Having a major brand like PayPal issue a stablecoin could help drive mainstream adoption.

Mate, we have had USDT for years at this point, and that is what everyone is using. Of course, the company that mints USDT (Tether) cannot be trusted to keep it fully pegged, but do you honestly think that PayPal USD will get huge adoption?

Why not? To my mind there is a very high chance that USDT will end up like Terra because they mint whatever numbers they want without actually backing it up with real assets and that's not only just a rumor. PayPal, on another hand, is number one payment provider, has been in business since the beginning and are still leaders in their niche. This makes PayPal very safe and trustworthy and definitely makes me think that there is a very low chance that PayPal's stablecoin will go down to zero because if that happens, then the PayPal as a company will demolish and this corporation is big enough with smart employees to not let this happen.
If you talk about PayPal blocking user's stablecoins, then you are right, that will happen in case governments or company thinks that there is something wrong but we don't talk about privacy here, then you shouldn't use stablecoins and stick with Monero. For businesses, rich traders and average people, PUSD is better alternative to fiat than USDT.

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Quote from: un_rank on September 29, 2023, 02:58:51 PM

And the holders do not care a bit cause many of them do not even believe in actual decentralization. It is either they do not trust themselves to safely hold the tokens or they appreciate what they believe to be extra security when the developers freeze stolen coins, when the question should be why all the breaches are happening in the first place.

I don't think it's always about not caring. Some use stablecoins as protection against the volatility that regular crypto assets go through but without selling their cryptocurrencies and exiting into fiat, which would create taxable events. In that case, they could use DAI, but mostly go for one of the more popular stablecoins instead. The freezing of assets is an unfortunate feature of such tokens that will hopefully never be used against ordinary and innocent individuals on the orders of government institutions and those in power.

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Quote from: NotATether on September 29, 2023, 09:47:09 AM

Nobody is going to accept a USD stablecoin from paypal if they can't use it to pay on websites that say "pay with paypal". If this is something that is going to be kept within Paypal's website and not go out to its payment card infrastructure, it's not going to make a dent like credit cards (issued by the banks) did.

You are be correct, however, there is an argument that because Paypal is one of the biggest payment processors in the world, merchants will be forced to accept PYUSD. I am quite certain if Paypal announced that they would allow PYUSD users to deposit PYUSD to exchanges in the cryptospace, all exchanges would accept them hehe. This might be free cashflow to from more than 100 million active users.

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- Jay -

Quote from: Pmalek on September 29, 2023, 01:56:49 PM

They are all centralized, they are all closed-source, and the issuers can freeze the stablecoin tokens in your address with the right request/paperwork from law enforcement...

And the holders do not care a bit cause many of them do not even believe in actual decentralization. It is either they do not trust themselves to safely hold the tokens or they appreciate what they believe to be extra security when the developers freeze stolen coins, when the question should be why all the breaches are happening in the first place.

- Jay -

Pmalek

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Great! That's exactly what we needed. One more stablecoin to add to the already long list of them.

Quote from: un_rank on August 11, 2023, 05:02:23 AM

I am not a fan of closed source, centralized services like PayPal and Stable coins.

Well, you just described every popular stablecoin project in existence except DAI. They are all centralized, they are all closed-source, and the issuers can freeze the stablecoin tokens in your address with the right request/paperwork from law enforcement. It doesn't even matter if you store they coins in a non-custodial wallet.

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Quote from: NotATether on September 29, 2023, 09:47:09 AM

Nobody is going to accept a USD stablecoin from paypal if they can't use it to pay on websites that say "pay with paypal". If this is something that is going to be kept within Paypal's website and not go out to its payment card infrastructure, it's not going to make a dent like credit cards (issued by the banks) did.

IF PP does not charge the stupid 2.9% CC fee or anything else I can see this becoming a PP bubble for things. They get to make entries in a database about what balance you have in your PayPal Digital Dollar account and it only comes to life when you withdraw it.

And I'll bet you that they just sit on the money that stays in their world earning interest on it, while your PayPal Dollar earns nothing.

-Dave

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Nobody is going to accept a USD stablecoin from paypal if they can't use it to pay on websites that say "pay with paypal". If this is something that is going to be kept within Paypal's website and not go out to its payment card infrastructure, it's not going to make a dent like credit cards (issued by the banks) did.

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Quote from: cyrilmorris on August 11, 2023, 12:27:06 AM

It's official - PayPal has revealed their plans to roll out a new US dollar-backed stablecoin.

Am not expecting this from a reputable organization like PayPal to take in this offer when bitcoin nis there and they are doing nothing about it acceptance first, aren't their customers not going to be more excited if this development was aimed at bitcoin adoption, this will only limit their capacity towards partaking from the world economy and financial development and advancement with the global adoption of bitcoin from making payments, they may be left out or never be among the early organizations to see the benefits with crypto payments.

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News update and Paypal is not only going to attack the stablecoin market.

It was declared that NFTs are dead, however, why is Paypal filing patents for NFT trading and transfer? What I speculate is very clear for much of the people in the forum. What we have witnessed on 2017 with Cryptokitties and Cryptorocks were only the beginning. The bluechip NFTs might become native store of value assets for the cryptospace and DeFi with small marketcap NFTs fighting for their place to get the bluechip classification.

Digital payments giant PayPal has filed a patent application for a system that would enable the transfer and trading of non-fungible tokens (NFTs) within its network. The company’s application would allow users to buy and sell NFTs using fiat currency or other cryptocurrencies directly on PayPal’s platform. This move comes as the popularity of NFTs continues to grow, with more and more artists and creators using them to sell digital assets such as artwork and music. PayPal’s entry into the NFT market could make it easier for both buyers and sellers to use the technology.

Source https://coinpedia.org/crypto-live-news/paypal-seeks-patent-for-nft-trading-and-transfer/

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Quote from: Woodie on September 10, 2023, 04:25:51 PM

For a company like PayPal who love to control their ecosystem...I bet you this stablecoin will make it possible for buyers and sellers to be able to chargeback because buyer/seller protection are among their feature products that make PayPal popular .

Thinking about that, it's really possible since it runs in eth network with of course smart contracts and with all what have seen from all the existing stablecoins — frozen funds, so expect that to happen.

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For a company like PayPal who love to control their ecosystem...I bet you this stablecoin will make it possible for buyers and sellers to be able to chargeback because buyer/seller protection are among their feature products that make PayPal popular .

Btw, when it comes to PayPal and crypto very few countries have access to this and how will this stablecoin work...will it also be exclusive to a few countries Roll Eyes

Already seeing red flags coming from these guys Cry

Topic: PayPal Just Announced Plans to Launch a USD Stablecoin - Thoughts? - page 2. (Read 649 times)