PayPal’s New Fiat Platform: The Stablecoin Killer You Didn’t See Coming?
PayPal just dropped a bombshell—its new fiat platform might render stablecoins obsolete. Here’s why the finance world is buzzing.
### The Endgame for Stablecoins?
With its latest move, PayPal isn’t just dipping a toe into digital finance—it’s bulldozing the competition. The platform’s seamless fiat integration could make volatile stablecoins look like relics overnight.
### Banks Hate This One Trick
No middlemen, no delays—just pure, unfiltered financial efficiency. PayPal’s play cuts through crypto’s red tape while somehow making traditional banks sweat even harder.
### A Cynic’s Take
Because nothing says 'innovation' like a trillion-dollar company replicating blockchain’s promise—but with extra fees and centralization. Classic finance, always late to the party but demanding VIP treatment.
A stablecoin killer?
In one section, PayPal claimed the platform will support newer technologies “over time,” including dynamic payment interfaces and stablecoins.
Such an overlap could be troubling for crypto builders, as it suggests traditional firms may achieve similar outcomes without relying on open, permissionless infrastructure.
But PayPal World isn’t necessarily “a stablecoin killer,” Gitay Shafran, founder of The Fedz, the issuer behind FUSD, a bank-run mitigation stablecoin, told Decrypt.
“It’s a bridge between legacy fiat systems, not a leap into the future of money,” Shafran said.
Others view it as validation of the problem stablecoins were designed to solve.
While the platform “raises the bar for fiat payments,” it WOULD still rely on “traditional correspondent banking channels, foreign-exchange spreads, and proprietary settlement processes,” Andrei Grachev, managing partner at synthetic dollar protocol Falcon Finance, told Decrypt.
Stablecoins, by contrast, have “advantages that are especially valuable for micro-payments, cross-chain exchanges, and regions where conventional banking is slow or unavailable,” he added.
