All posts tagged: stablecoin

The Stablecoin Debate That Isn’t

The Stablecoin Debate That Isn’t

Authored by Omid Malekan, Stablecoins have been in the news lately, thanks to another round of failed legislation, a well-intentioned but poorly-designed analytics dashboard compliments of Visa, and false equivocation by a columnist at the FT. Meet the wire transfer Nic Carter just published an epic review of the evolution of academic viewpoints on this topic, demonstrating how things are trending in the right direction. I consider Nic’s essay as a sort of realpolitik of acceptance: places where the industry is making progress because those who thought these coins could never work now concede that they can, and those who’ve been arguing they are dangerous are starting to see the benefits. I, on the other hand, am as confident as ever that eventually all currencies will be digital and ride some kind of blockchain infrastructure, by which point we’ll just call them…money. The whole “stablecoin” moniker will be forgotten, in the same way that we no longer distinguish between electronic markets and markets. (People used to debate this distinction too). A lot has changed since I first started making my “stablecoins will take …

Stablecoin Tether steps up monitoring in bid to combat illicit finance

Stablecoin Tether steps up monitoring in bid to combat illicit finance

LONDON : The world’s largest stablecoin, Tether, has stepped up monitoring of how its tokens are used in broader crypto markets and payments in a bid to combat illicit finance, Tether said in a statement on Thursday. Tether, a cryptocurrency pegged to the U.S. dollar, and blockchain analytics company Chainalysis have launched new tools to identify transactions associated with sanctioned entities and analyse the activity of major holders of the token, Tether said. Last month, Reuters reported that Venezuela’s state-run oil company PDVSA planned to increase use of Tether in its crude and fuel exports at a time when the U.S. has reimposed oil sanctions. The Wall Street Journal reported last month that Russian middlemen had used Tether to evade Western sanctions in order to source weapons parts for drones and other military equipment. A spokesperson for Tether did not immediately respond to a Reuters request for comment asking if there was a link between Thursday’s announcement and the Reuters report on PDVSA. Tether’s announcement did not mention either report. Tether has previously said that …

RBNZ Explores Introduction of Central Bank Digital Currency

RBNZ Explores Introduction of Central Bank Digital Currency

The Reserve Bank of New Zealand (RBNZ) has announced that it is exploring the introduction of a central bank digital currency (CBDC), often referred to as “digital cash.” This move comes as the RBNZ aims to address the challenges posed by innovations in money and payments to New Zealand’s monetary sovereignty. According to Ian Woolford, the RBNZ’s director of money and cash, the digital cash would coexist with physical cash options and would not require a commercial bank account for usage. Instead, users would only need a digital wallet, payment card, or mobile app. Woolford claimed that the digital cash would enhance privacy, security, and trust for users, and noted that the central bank “will not control or see how you spend your money.” Woolford also explained that it would work offline: It would also work via Bluetooth, so you could make payments without connecting to internet. This would be useful in an emergency, or when the power is out. The RBNZ has launched a consultation period, which will last until July 26, 2024, to …

Stablecoin developers get new tool to spur acceptance

Stablecoin developers get new tool to spur acceptance

The whole point of a stablecoin is that its value remains steady, but in a pleasant twist for the cryptocurrency world, the value of stablecoins as an economic resource is taking off. The events of the past few months show the increasing acceptance of stablecoins, and one development in particular may accelerate the process by making it easier to create and manage stablecoins. A multinational financial services firm based in France listed its own euro-backed stablecoin: EUR CoinVertible. (source) A prominent U.S.-based stablecoin issuer reports 51% of Latin American consumers have made a purchase with digital currency and one-third have used stablecoin for everyday purchases. (source) A leading U.S.-based digital payment provider announced the issuance of a USD-backed stablecoin. (source) A Nigerian fintech company said it will launch USDC payment settlements with Hedera. (source): The Stablecoin Studio SDK by Hedera removes barriers involved in creating and managing stablecoin applications. It aims to be an all-encompassing toolkit, integrating cutting-edge features for transparency, compliance and security management. We’ve seen poorly coded stablecoins lose their peg, resulting in …

Analysis:Tether’s 0 billion stokes stablecoin stability concerns

Analysis:Tether’s $100 billion stokes stablecoin stability concerns

LONDON/NEW YORK : As Tether toasts $100 billion in circulation this week, the rapid rise of the world’s biggest stablecoin has highlighted concerns about potential risks to wider financial markets. The digital dollar-pegged token is designed to keep a constant value, something Tether says that it does by holding dollar-denominated reserves for every token it creates. Crypto traders say the tokens are essential for moving funds in crypto quickly, without using the regulated banking system. “Tether plays a pivotal role in our day-to-day operations, primarily serving as a mechanism for moving funds swiftly between trading venues,” said Michael Hall, founding partner of London-based crypto asset manager Nickel Digital. Regulators, however, have long-standing concerns that growing stablecoin reserves expose the broader financial system to bigger risks, because they act as a bridge between the crypto universe and mainstream financial markets. James Butterfill, head of research at asset manager CoinShares, said that Tether’s dominance increases systemic risk within crypto. “If Tether fails for some unlikely reason, it would lead to a dramatic decline in trading volumes,” he …

Stablecoin company Circle going public makes good sense

Stablecoin company Circle going public makes good sense

If at first you don’t succeed, wait and try again. That seems to be the mantra at Circle, best known as the issuer of the “USDC” stablecoin. After calling off its SPAC combination in late 2022, the well-known crypto company is now seemingly considering going public in 2024, Bloomberg reported, citing anonymous sources. The Exchange explores startups, markets and money. Read it every morning on TechCrunch+ or get The Exchange newsletter every Saturday. It may seem incongruous to see Circle considering going public at a time when the wider crypto industry is slogging through a downturn. But given how the company earns its keep, and the rising importance of stablecoins in the decentralized economy, the IPO does not come as a massive surprise. In fact, Circle is likely riding a wave that other fintech companies are also benefiting from: rising interest rates. Much ado about stables Stablecoins are a simple idea: A crypto token is pegged to an existing fiat currency, backed 1:1 with assets that make it easy to redeem. It’s certainly a bit …

SEC subpoenas PayPal over its USD-pegged stablecoin

SEC subpoenas PayPal over its USD-pegged stablecoin

Just three months after PayPal entered the fray to bring stablecoins to the masses, it’s attracting attention from U.S. regulators. The payments giant said Thursday that it had received a subpoena from the Securities and Exchange Commission related to its U.S. dollar-pegged stablecoin, according to Reuters. TechCrunch has reached out to PayPal for comment. In early August, PayPal launched PYUSD, a stablecoin issued by Paxos Trust Company and backed by U.S. dollar deposits. At the time, the firm said the digital currency solution would be “gradually” rolling out to users in the U.S. In September, PayPal made the stablecoin available on Venmo. PayPal joins a growing list of tech companies targeted by U.S. authorities over their interaction with digital currencies. While most of the players under regulatory scrutiny are crypto-native, PayPal marked the first major U.S. financial institution to launch stablecoins for payments and transfers. This is a developing story…    Source link

PayPal’s PYUSD stablecoin is now available on Venmo

PayPal’s PYUSD stablecoin is now available on Venmo

PayPal announced today that PYUSD, its stablecoin for payments and transfers, is now available on Venmo. PYUSD is available to select users starting today and will be rolling out fully in the coming weeks. Venmo users can purchase PYUSD and send it to others on PayPal, Venmo and compatible external wallets. Users using compatible external wallets, and merchants accepting payments in PYUSD, will also be able to receive transfers from Venmo users. PayPal notes that blockchain network fees apply. PYUSD, which launched last month, is issued by Paxos Trust Company and is backed by U.S. dollar deposits, short-term U.S Treasuries and similar cash equivalents. Initially, about $24.9 million PYUSD came from Paxos treasury. As it stands, the total supply of circulating PYUSD is $44.376 million, according to Etherscan data. “PYUSD is already present in native crypto experiences, and continues to be made more broadly available as the ecosystem grows,” the company said in a blog post. “In the few weeks since its launch in the open market, PYUSD is already present on select exchanges including …

SEC to appeal XRP, PayPal launches stablecoin, and Microsoft partners with Aptos

SEC to appeal XRP, PayPal launches stablecoin, and Microsoft partners with Aptos

Welcome back to Chain Reaction. To get a roundup of TechCrunch’s biggest and most important crypto stories delivered to your inbox every Thursday at 12 p.m. PT, subscribe here. This week was a busy one for crypto (per usual) with the SEC, PayPal, Coinbase and Microsoft leading the headlines. Let’s get into it. This week in web3 The SEC said in a court filing on Wednesday that it would file an “interlocutory appeal” for the federal court ruling on Ripple and the XRP token last month. Read more. Artificial intelligence has captured the hearts, minds and wallets of the technology industry. So it’s little surprise that Microsoft, which has several irons in the AI fire, is working to expand its footprint in the area. On Wednesday, the company announced that it is partnering with layer-1 blockchain Aptos Labs to work on AI and web3. Details here. PayPal is rolling out a stablecoin for payments and transfers. Yes, you read that right. Find out what that means for users and the traditional payment world here.  Will …

PayPal launches PYUSD stablecoin for payments and transfers

PayPal launches PYUSD stablecoin for payments and transfers

PayPal is rolling out a stablecoin for payments and transfers, the company announced on Monday. PayPal USD (PYUSD) is issued by Paxos Trust Company and is backed by U.S. dollar deposits, short-term U.S Treasuries and similar cash equivalents. PayPal says the stablecoin is rolling out to US customers gradually. Eligible U.S. PayPal customers who purchase PYUSD will be able to transfer PYUSD between PayPal and compatible external wallets, send person-to-person payments using PYUSD, fund purchases with PYUSD by selecting it at checkout and convert any of PayPal’s supported cryptocurrencies to and from PYUSD. PayPal says that when you buy or sell cryptocurrency, including when you check out with crypto, it will disclose an exchange rate and any fees you will be charged for that transaction. “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 …