Tether CTO Says PayPals PYUSD Could Erode USDTs Competition in America

Tether CTO Paolo Ardoino: PYUSD Could Erode USDT’s US Competition

Tether CTO Paolo Ardoino believes that PayPal’s newly launched stablecoin PYUSD could pose a challenge to competitors like Circle’s USD Coin (USDC), rather than being a direct competition to Tether. According to Ardoino, PYUSD may hurt US-centric stablecoins that heavily rely on the American market, while Tether focuses on emerging markets outside the US. He suggests that PYUSD could lead to a decline in revenues for payment giants like MasterCard and Visa, but it could also help the industry grow further and push for sensible regulations.

Key Points:

Paolo Ardoino views PayPal’s PYUSD as a challenge to competitors like USDC, not a direct competition to Tether.
PYUSD could be a problem for US-centric stablecoins that heavily rely on the American market.
Tether focuses on emerging markets outside the US, which sets it apart from the competition.
PYUSD could lead to a decline in revenues for payment giants like MasterCard and Visa.
However, PYUSD could also help the industry grow and push for sensible regulations.

PayPal recently launched PYUSD, which is backed by US dollar deposits, short-term US treasuries, and similar cash equivalents. It can be redeemed 1:1 for US dollars and will be issued by crypto firm Paxos. PYUSD aims to reduce friction for in-experience payments, facilitate fast transfers of value, support remittances and international payments, enable direct flows to developers and creators, and expand into the digital asset space. The stablecoin is compatible with web3-specific environments and will soon be available on Venmo.

Hot Take:

While PYUSD may not directly compete with Tether, it could pose a threat to US-centric stablecoins by eroding their market share. The launch of PYUSD by a major player like PayPal indicates the growing interest and adoption of stablecoins. The competition among stablecoin providers will likely intensify, leading to innovation and improved services for users. It will be interesting to see how the stablecoin market evolves in response to this new development.