Tether CTO Paolo Ardoino says PayPal’s recently launched stablecoin PYUSD could hurt USDT’s US competition.
In a new interview with Benzinga, Ardoino say that he doesn’t see PYUSD as competition for Tether, but rather as a challenge to competitors like Circle’s USD Coin (USDC).
According to Ardoino, PYUSD could be a problem for USDC or other US-focused stablecoins that rely heavily on the US market, while Tether largely focuses on emerging markets outside the US.
“It is interesting. Another stablecoin in the US It could lead to revenue erosion for payments that have mainly fueled MasterCard and Visa. It will also help the industry continue to grow and push for sensible regulation…
It could mean an additional setback from our competition which is very focused on the US.”
PayPal launched PYUSD, a stablecoin backed by US dollar deposits, short-term US Treasury bonds and other similar cash equivalents, sold earlier this week. The stablecoin can be exchanged 1:1 for US dollars and will be issued by crypto company Paxos, according to a PayPal blog post.
“PayPal USD is designed to reduce friction for in-experience payments in virtual environments, facilitate rapid transfers of value to support friends and family, send remittances or make international payments, enable direct flows to developers and creators and the continued expansion into digital assets of the world’s biggest brands.
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.
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