With the emergence of PayPal stablecoins, will these assets determine the direction of the digital economy or will there be a factor that can alter the relevance of stablecoins?
Speaking at the Istanbul Blockchain Week 2023, Robert Mccracken, Ecosystem Lead of Alchemy Pay said that PayPal’s recent launch of its own stablecoin marks a significant shift in the fintech landscape.
This move by a major player in the industry signals a noteworthy development in the fintech revolution.
He added that the stablecoin launch holds the potential for credibility-building, although its ongoing impact remains to be seen.
While the industry is interested in the direction of PayPal’s involvement, and considering the lessons learned from challenges faced by stablecoins like Tether (Terror USD), the Lead said that stablecoins are expected to remain relevant unless there is a shift towards a Bitcoin-pegged ecosystem in the future.
High demand for stablecoins
Speaking alongside the Alchemy official was Alexandre Chesse, Head of Sales France Middle-East Africa, Fireblocks, who said that the demand for stablecoins, including those initiated by PayPal, is evident from the substantial trading volumes observed daily on platforms like CoinMarketCap.
He also noted that due to this demand, Fireblocks is seeing a trend where various banks are also entering the space by launching their own stablecoins on public blockchains with permission tokens.
This approach combines scalability and security while adhering to regulatory standards.
Kadir Medina, Director of Business Development, Toobit Exchange, further emphasized the sentiment of Alexandre saying that stablecoins have gained popularity among newbies in the crypto space due to their stability compared to fiat currencies. Despite occasional news about crashes, stablecoins remain a reliable investment choice.
She added that the importance of liquidity and stablecoins in the success of crypto projects is emphasized by the number of holders and their confidence in assets like USDT.
This has led TooBit to create a Web3 platform that ensures security and effective order book management to allow users to make informed decisions about buying and selling.
Central banks and stablecoins
May Michelson, Director of Global Sales, GK8, said that the introduction of PayPal’s coin is seen as a remarkable initiative that addresses real-world issues like remittances and money transfers.
This initiative eliminates the need for intermediaries and offers real-time transactions without currency conversion, granting users more control.
She remarked that the popularity of stablecoins is also on the rise, with GK8 participating in Central Bank digital currency projects.
The ability to deploy smart contracts directly from their Vault is aiding the growth of these initiatives globally, making it an exciting time for advancements in this space.
From long-term investors to payment solutions
Also, Robert said that the evolution of stablecoins has shifted the perception of cryptocurrencies from being solely long-term investments to actual payment methods. This change is significant for payment companies like PayPal.
Stablecoins have gained traction as they are pegged to assets like the dollar or specific commodities, making them suitable for everyday transactions. This shift is exemplified by the use of white-label MasterCards funded with stablecoins like USDT and USDC.
He noted the effect is that people are now comfortable using stablecoins for payments, alongside holding their investment portfolios.
