Global payment giant PayPal has announced that all users in the United States, except residents of Hawaii, will now have the ability to facilitate money transfers to friends and family abroad using USD converted from the PayPal USD (PYUSD) stablecoin. This move allows US customers leveraging PayPal’s cross-border payments platform, Xoom, to convert PYUSD to USD and send money to recipients in approximately 160 countries with no transaction fees.
Jose Fernandez da Ponte, Senior Vice President of the Blockchain, Cryptocurrency, and Digital Currency Group at PayPal, emphasized that the introduction of PYUSD aims to drive mainstream adoption of cryptocurrencies while offering an easy and cost-effective way to securely send money internationally. This development underscores the growing importance of stablecoins in facilitating efficient and affordable cross-border transactions.
The stablecoin market is witnessing increased competition, with various alternatives emerging to compete for market share alongside established stablecoins like USDT and USDC. PayPal’s launch of PYUSD on the Ethereum blockchain in collaboration with Paxos in August 2023 signaled the company’s commitment to removing friction for in-experience payments and enabling cost-effective transfers of value.
Despite regulatory uncertainty, PayPal’s foray into the stablecoin market has garnered support from prominent individuals in the crypto industry, with several crypto exchanges listing PYUSD shortly after its launch. However, PayPal has faced scrutiny from regulatory authorities, including a subpoena from the Securities and Exchange Commission (SEC) in November.
As PayPal continues to navigate regulatory challenges and expand its offerings in the cryptocurrency space, the introduction of PYUSD for cross-border transfers is a significant step towards mainstream adoption of digital assets and the broader integration of blockchain technology into traditional financial services.
