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Tether CTO Paolo Ardoino says that PayPal’s newly launched stablecoin PYUSD could hurt USDT‘s US competition.
In a new interview with Benzinga, Ardoino says that he doesn’t view PYUSD as competition for Tether, but rather, he views it as a challenge for competitors like Circle’s USD Coin (USDC).
According to Ardoino, PYUSD may be a problem for USDC or other US-centric stablecoins that rely heavily on the American market, while Tether focuses largely on emerging markets outside the US.
“It’s interesting. Another stablecoin in the U.S. It could lead to the erosion of revenues for payments that have been mainly fueling MasterCard and Visa. It will also help the industry to grow further and push for sensible regulations…
It might mean an additional decline of our competition that is very much focused on the U.S.”
PayPal launched PYUSD, a stablecoin that is backed by US dollar deposits, short-term US treasuries and other similar cash equivalents, earlier this week. The stablecoin can be redeemed 1:1 for US dollars and will be issued by crypto firm Paxos, according to a blog post by PayPal.
“PayPal USD is designed to reduce friction for in-experience payments in virtual environments, facilitate fast transfers of value to support friends and family, send remittances or conduct international payments, enable direct flows to developers and creators, and foster the continued expansion into digital assets by the largest brands in the world.
Most of the current volume of stablecoins is used in web3-specific environments – PayPal USD will be compatible with that ecosystem from day one and will soon be available on Venmo.”