Global payments giant PayPal (PYPL) is entering the cryptocurrency market with its own U.S. dollar-pegged stablecoin, PayPal USD (PYUSD), the company announced on Monday. The Ethereum-based token will soon be available to PayPal users in the U.S. and is the first time a major financial company is issuing its own stablecoin. Users can transfer PYUSD between PayPal and supported external wallets, fund goods and services purchases, or convert any of PayPal's supported cryptocurrencies to and from PYUSD.
The Bank of Russia (BoR) has revealed that it will begin testing operations for Russia’s central bank digital currency (CBDC) project with digital rubles. The test will begin on Aug. 15. A statement released by the Bank of Russia indicates that the pilot tests will involve the participation of 13 banks and a restricted group of their clients. According to Olga Skorobogatova, first deputy governor of the Bank of Russia, initiating pilot operations using genuine digital rubles represents a pivotal phase within the project.
"The U.S. Securities and Exchange Commission has made its move against the recent judgment favoring Ripple’s cryptocurrency, XRP. The SEC now contends that XRP should be viewed as a security. This legal tussle traces back to a July 13 order when the court determined in partial favor of the defendants when Judge Analisa Torres regarded its sales of XRP tokens on exchanges and through algorithmic procedures not deemed as investment contracts."
Judge Kaplan said in court today that he didn't believe a gag order—to stop Bankman-Fried from talking to the media—would be sufficient. According to courtroom tweets sent by Matthew Russell Lee, otherwise known as Inner City Press, Kaplan said it's likely Bankman-Fried will be detained at Metropolitan Detention Center in Brooklyn. He noted it's possible the FTX founder and former CEO may have access to a laptop while he's detained.
"Private wealth management company Bernstein has projected stablecoins to grow by 2,140% in the next five years with huge developments trickling into the sector. According to the report, the stablecoin market stands at $125 billion with USD Tether USDT and USD Circle USDC as leaders but is expected to hit $2.8 trillion by 2028. If these forecasts become reality, it means that the entire cryptocurrency market will experience surging volumes as the stablecoin market is likely to grow alongside other assets."
And that’s all for last week’s news! Wishing you a great week ahead!
With history in the making as El Salvador makes Bitcoin legal tender on September 7th, 2021, we examine the implications for the country’s financial system, its people, and the global remittance industry.