this post was submitted on 16 Oct 2025
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PayPal's stablecoin, which it debuted in 2023, is supposed to be redeemable at a 1:1 rate for US dollars. $300 trillion is more than double the entire world's current GDP of $117 trillion. In short, that's a really bad mistake from Paxos.“

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[–] wizardbeard@lemmy.dbzer0.com 11 points 1 week ago (2 children)

What in the world is even the point of a coin with 1:1 exchange rate? Just avoiding all the pesky laws? At that point just use the original currency.

It's easier to bring across a border as you don't have anything physical. You don't have to get along with any bank to transfer it to you on the other side. You can transfer it to whoever's around where you go. The transfers happen near instantaneously compared to using banking services.

[–] Chana@hexbear.net 7 points 1 week ago

I think it tends to be used as an intermediary for doing various crypto shenanigans, usually to stabilize "coins".