Tether Lianchuang: PayPal’s launch of PYUSD is unlikely to bring much innovation

Odaily Planet Daily News William Quigley, one of the co-founders of Tether, said that although he believes that privately issued stablecoins are "beneficial to society in every aspect," PayPal's recent launch of PYUSD is unlikely to bring much innovation. Quigley said in an interview: "I don't think PayPal will bring a lot of innovation. PayPal will see this as a cost savings, but it will not necessarily be passed on to the end user." Quigley, who left Tether in 2015, was also an early investor in PayPal, but he no longer holds any stock in the company. He said that PayPal has been studying stablecoins for seven or eight years. Quigley explained that once PayPal tokenizes a currency backed by bank deposits, it will have a private multi-currency currency supply that exists outside of the global banking system and is not subject to any third-party fee-charging agencies. It said: “All transactions are now completed on a private blockchain outside the Visa network and banking system. There are no financial intermediaries anymore, just PayPal. There are no third-party foreign exchange intermediaries to collect margins because there is no actual currency exchange. Just an exchange between tokens, no foreign exchange or exchange fees.” He also said that PayPal, which charges consumers and merchants 200 basis points or more in currency exchange fees on cross-border transactions, could leverage its new stablecoin network in one of two ways. (CoinDesk)