Daily Crypto, Finance, and Tech News Summary – October 4, 2023

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Welcome, and thank you for being part of the MyZucoins community! Let’s get into an interesting piece of crypto, finance, or tech news to stay ahead.

Bankers in the financial world climbing and falling

Follow-Up: PayPal Entering The Crazy World Of Crypto

PayPal, a popular financial service company, has recently ventured into the world of cryptocurrencies with the launch of its very own stablecoin, named PayPal USD (PYUSD).

This exciting development was unveiled about two months ago, marking PayPal as the first major financial company to release a public-use stablecoin.

PYUSD operates on the Ethereum blockchain, an open-source system that allows anyone to develop tools.

This choice of network interestingly allows for a type of organic spread that most executives can only dream about.

Other providers can pick up and adopt PYUSD as they see fit, contributing to its growth.

It could potentially be used as an on-off ramp from local (fiat) currencies into other cryptos.

However, this brave new world of crypto isn’t without its risks for PayPal.

Stablecoins have become something of a political hot potato.

With PayPal’s new venture, they’ve partnered with Paxos, a centrally managed stablecoin operator, to issue and manage PYUSD.

Paxos has the ability to perform anti-money laundering checks and even freeze tokens if necessary.

What’s more, PayPal’s new venture has drawn criticism from politicians such as Democratic congresswoman Maxine Waters.

Concerns have been raised regarding the lack of a federal framework for regulation, oversight, and enforcement of these assets.

Given PayPal’s vast customer base of 435 million, some are calling for federal oversight to ensure consumer protections and alleviate financial stability concerns.

PayPal’s leap into the crypto world could potentially act as a springboard to onboard people into the world of crypto payment systems.

However, navigating the choppy waters of compliance in this crypto-first world, and satisfying real-world regulators, is a challenge that’s easier said than done. Read more here.

More On This Topic:

The Rise Of Noncustodial Finance: A User-Friendly Bridge To Cryptocurrency Adoption.

PayPal’s Stablecoin Opens Door For Crypto Adoption In Traditional Finance.

PayPal Takes a Step Into Crypto with PYUSD Stablecoin.

Lessons From PayPal’s Approach For Next Generation Cryptos

Zucoins, with its Splitchain network, offers a completely different approach to some of the challenges PayPal faces with its PYUSD stablecoin.

Unlike PayPal’s reliance on Paxos, a centralized (layer 2) stablecoin, built for issuing and managing the token “PYUSD”, Zucoins operates on the base Splitchain system, using its unique network design where, as it continues to decentralize, reduces dependency on single points of failure.

The network allows nodes to cache data and provide it to peers for efficient processing.

This autonomous network caching system and transaction encryption among peers results in a swift, secure, and independent network, mitigating the risk of control by a controlling entity.

Taking a cue from the issues of compliance faced by PayPal, Zucoins is no stranger to regulatory compliance and has been continuing to prioritize an even stronger foundation for coming regulations.

Zucoin transactions are two-way and authenticated in real-time, at the time of a transaction, by both the sender and receiver.

This should reduce fraudulent transactions, by placing responsibilities back into users’ own hands, helping them to decide and deny any unknown transactions.

Other cryptos and even traditional transaction systems are one-way transactions, meaning that you can’t stop someone from sending you something.

This causes all kinds of potential headaches from unexpected transaction associations, causing accounts to get flagged and frozen by poor-quality fraud detection systems.

Zucoins offers a solution for increasingly risk-averse institutions and enhances user control.

By demonstrating the measures it has taken to improve user safety and minimize misuse, Zucoins continues to position itself as a responsible, forward-thinking player in the crypto space.

Factors like these are key when going through review or audit processes with Australia’s Austrac (anti-money laundering and anti-terrorism regulator) and Australia’s ASIC (securities regulator), as a significant advantage over traditional cryptocurrencies and even traditional asset systems.

Also, the Splitchain network’s potential to support micro-transactions with no fees could be a game-changer in the face of PayPal’s PYUSD.

The absence of built-in transaction fees on the Splitchain network, while realistically supporting micro-transactions coupled with the fast, currently 90-second settlement speed, could prove to be a major selling point.

By focusing on enhancing user experience through these features, Zucoins is working to establish itself as a preferred choice for users in the crypto market.

Demonstrating Splitchain’s unique package of features and their upsides, prioritizing compliance, engaging with regulators, and focusing on user experience, Zucoins could carve out a distinct place for itself in the crypto landscape.

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All the best,
Peter & Rob

Disclaimer: Of course, this is not advice, financial or otherwise. It’s also important to consider the risks and challenges associated with any potential benefits.