PayPal Joins Stablecoin Revolution: What Are They and Why Now?

Stablecoins, a type of cryptocurrency, have become an integral part of the crypto market, with around $125 billion in circulation in early August. They offer an alternative to the volatility of other cryptocurrencies, such as Bitcoin, as they are designed to hold a steady value, typically pegged to the US dollar. This makes them ideal for those who need to store their profits securely and move between different digital assets or exchanges. The most popular of these is Tether, which can be exchanged for many other cryptocurrencies. Despite the growth of stablecoins, the attempt by Meta Platforms Inc to launch one recently failed due to a backlash, while PayPal Holdings Inc is the first of the big financial companies to enter the market.