PayPal has chosen to include its PayPal USD stablecoin (PYUSD) onto the Solana blockchain due to Solana’s exceptional transaction speed and minimal costs.
This statement refers to the successful implementation of PYUSD on the Ethereum blockchain and its subsequent integration into PayPal’s Venmo service.
Solana has a transaction processing capacity of about 1,423 transactions per second (tps), which is much higher than Ethereum’s range of 12 to 15 tps. Jose Fernandez da Ponte, the Senior Vice President for blockchain at PayPal, highlighted Solana’s exceptional transaction volume characteristics, which make it very well-suited for retail payments.
The Solana memecoin market has had a significant increase, driven by the popularity of currencies like as Slerf, Boom of Meme, Snap, and Dogwifhat, resulting in a rise in decentralized exchange activity. This growth is in line with PayPal’s strategy to broaden the reach of PYUSD into untapped regions.
While PYUSD is mostly used on cryptocurrency exchanges and in decentralized finance, PayPal intends to broaden its application to include retail payments and developing markets in Latin America, Southeast Asia, and Africa. Diversifying into these sectors would enhance the practicality of PYUSD in day-to-day transactions.
In February 2023, PayPal encountered regulatory attention and temporarily halted its stablecoin initiatives. Additionally, in November 2022, the company received a subpoena from the Securities and Exchange Commission (SEC). Nevertheless, the corporation is actively collaborating with the SEC to resolve any apprehensions.
PayPal maintains its confidence in the reliability of Solana, notwithstanding the reported network difficulties. The firm guarantees consumers the ability to transition to Ethereum if necessary.
PayPal’s decision to incorporate PYUSD into several blockchains is a deliberate step aimed at enhancing flexibility and durability.
Last month, the PayPal‘s Blockchain Research Group proposed giving sustainable energy miners more Bitcoin to decrease Bitcoin mining’s environmental effect.