PayPal has become the first major U.S. fintech firm to launch its own cryptocurrency with a stablecoin called PayPal USD. Issued by Paxos Trust Company, PayPal USD is 100 percent backed by dollar deposits, U.S. treasuries and cash equivalents, and will maintain a value of exactly $1, according to the company. Initially available only to U.S. customers, CEO Dan Schulman says PayPal intends to make cryptocurrency a part of its overall payments infrastructure and will soon integrate it with its Venmo mobile payment app. PayPal shares, in a slump since last year, were up 3 percent on the news. Continue reading PayPal Is First Major U.S. Fintech to Launch Own Stablecoin

Although the cryptocurrency known as stablecoin has garnered mainstream attention recently, with the Biden administration’s call for federal guidelines, critics warn that a subset known as “algorithmic stablecoin” is a crisis in the making. Meanwhile, specific crypto brands like Bitcoin and Ethereum have seen prices drop — Bitcoin below the $40,000 per unit mark, while Ethereum shares dipped below $3,000. In fact, the entire cryptocurrency market is reported to have lost about $400 billion in April as part of what’s being described as “selloff mode.” Continue reading Cryptocurrency Market Faces Challenges While Stocks Spiral

Washington policymakers have identified stablecoins as the initial target for stricter cryptocurrency regulation. Stablecoins — which are backed by a reserve asset — are booming due to investors using them to trade among other cryptocurrencies. The stablecoin sector grew by about 500 percent in the 12-month period ending October 31, according to a report issued by the Biden administration. While there are four basic types of stablecoin, the ones collateralized by fiat currency — and specifically the U.S. dollar — is by far the most popular. A bipartisan effort exists to create safeguards ensuring one stablecoin is expeditiously redeemable for one dollar. Continue reading U.S. Lawmakers Target Stablecoin in Cryptocurrency Debate

Cryptocurrency bridges, which enable transactions across a wide range of token types, are an increasingly important factor in the world of blockchain. A hack involving approximately $540 million in Ethereum and USDC stablecoin from the Ronin bridge in March was another drop in the $1 billion-plus bucket stolen from bridges. Successful attacks have become more common in recent years and the Ronin heist, among the largest, underscores a bigger problem. Different cryptocurrencies are typically siloed, so a Dogecoin transaction can’t be implemented on the Bitcoin blockchain, but it can by using a bridge. Continue reading Crypto Bridges Creating Vulnerabilities Popular with Hackers

As cryptocurrencies undergo explosive growth with little federal oversight, the Treasury Department is asking Congress for more power to regulate stablecoins due to their perceived danger of triggering a run on funds, according to a report by the President’s Working Group on Financial Markets. Treasury is asking that those issuing stablecoins be subject to the same requirements under which banks and other traditional financial institutions operate, which would require the crypto’s brokers to maintain sufficient reserves to compensate customers who want to cash out quickly. Continue reading Regulators Press Congress to Develop Cryptocurrency Rules

Although Bitcoin accounts for 70 percent of all the global digital assets’ market value, Tether is the world’s most widely used cryptocurrency, said CoinMarketCap, which revealed that Tether, despite the fact that it’s market capitalization is 30 times smaller than Bitcoin, has the highest daily and monthly trading volume. Tether surpassed Bitcoin in April and, said CoinMarketCap, has done so consistently since early August, at about $21 billion per day, with monthly trading volume 18 percent higher than Bitcoin’s. Continue reading Tether, Most Widely Used Cryptocurrency, Is Under Scrutiny

With an initial focus on the Indian market, Facebook is developing a cryptocurrency aimed for use on its WhatsApp messaging app. More specifically, sources said the company is developing a so-called stablecoin, which is pegged to the U.S. dollar to reduce volatility. The company is, however, still working on its strategy, meaning that debut of the coin is still some time off. In 2014, Facebook hired former PayPal president David Marcus to run Messenger, fueling belief the company was going to engage in financial services. Continue reading Facebook Strategizing Cryptocurrency for WhatsApp in India