PayPal Completes Its First Business Transaction Using Stablecoin (bloomberg.com)
(Thursday October 03, 2024 @11:02AM (msmash)
from the moving-forward dept.)
- Reference: 0175185107
- News link: https://news.slashdot.org/story/24/10/03/1449235/paypal-completes-its-first-business-transaction-using-stablecoin
- Source link: https://www.bloomberg.com/news/articles/2024-10-03/paypal-completes-its-first-business-transaction-using-stablecoin
PayPal completed its [1]first business payment using its proprietary stablecoin as a way to demonstrate how digital currencies can be used to improve often-clunky commercial transactions. From a report:
> PayPal paid an invoice to Ernst & Young LLP on Sept. 23 using PYUSD, the stablecoin the firm [2]launched last year , relying on an SAP SE platform to complete the transaction. SAP's platform, known as the digital currency hub, allows enterprises to send and receive digital payments instantly, around the clock. The invoice amount wasn't disclosed.
>
> Stablecoins are cryptocurrencies usually designed to track traditional currencies one-to-one. PYUSD, which has a current market capitalization of almost $700 million, tracks the US dollar. While the consumer-facing benefits of stablecoins often dominate conversations, this payment demonstrates other use cases for the digital currency, according to Jose Fernandez da Ponte, PayPal's senior vice president of its blockchain, cryptocurrency and digital currency group.
[1] https://www.bloomberg.com/news/articles/2024-10-03/paypal-completes-its-first-business-transaction-using-stablecoin
[2] https://slashdot.org/story/23/08/07/141252/paypal-launches-stablecoin-on-ethereum-citing-shift-toward-digital-currencies
> PayPal paid an invoice to Ernst & Young LLP on Sept. 23 using PYUSD, the stablecoin the firm [2]launched last year , relying on an SAP SE platform to complete the transaction. SAP's platform, known as the digital currency hub, allows enterprises to send and receive digital payments instantly, around the clock. The invoice amount wasn't disclosed.
>
> Stablecoins are cryptocurrencies usually designed to track traditional currencies one-to-one. PYUSD, which has a current market capitalization of almost $700 million, tracks the US dollar. While the consumer-facing benefits of stablecoins often dominate conversations, this payment demonstrates other use cases for the digital currency, according to Jose Fernandez da Ponte, PayPal's senior vice president of its blockchain, cryptocurrency and digital currency group.
[1] https://www.bloomberg.com/news/articles/2024-10-03/paypal-completes-its-first-business-transaction-using-stablecoin
[2] https://slashdot.org/story/23/08/07/141252/paypal-launches-stablecoin-on-ethereum-citing-shift-toward-digital-currencies
if it's one to one (Score:3)
Why not just use the dollar? Bank should be able to manage the EFT same day.
Re: if it's one to one (Score:2)
Essentially, they want to print money. That works bacause "stable"-coins are not actually that stable.
Re: if it's one to one (Score:2)
Shut up. Crypto! Profit! Blockchain! Defi! But, but, shut up! Crypto! Can only go up! Shut up! Trumpcoin!
Thats why.
Re: if it's one to one (Score:1)
In the US, an ACH transfer through the Fed can take three days (most of which is banks just sitting on the transferred funds to earn their own interest). To do faster, you need to pay an Electronic Payments Network like Fiserv.
PayPal has press releases saying they partner with Fiserv. But thatâ(TM)s still someone else collecting the money for transaction fees. By operating their own stablecoin, they can participate in the processing network (Ethereum & Solana) and receive transaction fees.
Now the