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PayPal to support Ethereum and Bitcoin

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Re: PayPal to support Ethereum and Bitcoin

#131

Post by ac29 »

JumpCrisscross wrote: post #54
this_user wrote: post #38

Earlier quoted context omitted.

That's not how any of this works. You may not receive any interest on your stablecoin balance, but the issuer certainly does. Why would they offer to lend money to the US government at zero when they can get the market rate and pocket it? What's more, these are mostly short-term instruments This means any increase in inflation will be reflected in their yield.

> You may not receive any interest on your stablecoin balance, but the issuer certainly does A bunch of zero marginal cost capital funding purchases of U.S. debt would absolutely push down rates, possibly lower than inflation, because if you’re a stablecoin issuer you’re not constrained by yield. This is a dumb-money venture. And if there is this much money that is this dumb, Treasuries aren’t the worst place for it…

>A bunch of zero marginal cost capital funding purchases of U.S. debt would absolutely push down rates

There is a floor to short term treasury rates because the Fed also runs overnight repo operations linked to the Fed funds rate

Re: PayPal to support Ethereum and Bitcoin

#132

Post by 1oooqooq »

JumpCrisscross wrote: post #55
toast0 wrote: post #43

Earlier quoted context omitted.

Not anymore than a USD deposit account. Just with extra steps.

> Not anymore than a USD deposit account These typically pay interest. (Or have retail servicing costs attached.)

not anymore, this is not guaranteed in the "app age". and the interest was always negligible.

Re: PayPal to support Ethereum and Bitcoin

#133

Post by vkou »

mistercheph wrote: post #114
praptak wrote: post #109

Earlier quoted context omitted.

It would have to handle chargebacks and resolve disputes.

Those are functions of a marketplace, a low-cost pseudo-legal system so that you hopefully avoid using a state's costly and slow legal system. But if marketplaces also own the medium of exchange, e.g. marketplaces that issue tokens and only allow transacting in tokens (Paypal behind the scenes), their economic incentive is not to resolve disputes, but to create as many barriers as possible to converting tokens back i…

The problem is that there are two parties in any transaction, and power users/casual users swayed by marketing will be the ones that will choose the medium on which the transaction will take place.

So while you may want a self-sovereign exchange, your counterparty doesn't give a shit about your preferences, or is actively happy with using PayPal (Because their dispute resolution is better biased towards their side of the transaction, or because they just never gave it a second thought.)

Re: PayPal to support Ethereum and Bitcoin

#134

Post by 1oooqooq »

what's the end goal of stablecoins, besides the immediate grift?

do they think countries' populations will "opt in" into dolarizing that country econony (a la argentina in the 80s) bypassing their central bank opinions?

or is this much simpler and is just "ebay now works as crypto escrow for your bids"?

Re: PayPal to support Ethereum and Bitcoin

#135

Post by heap_perms »

egorfine wrote: post #86

Title: PayPal [..] Reimagining How Money Moves to Anyone, Anywhere. Text: PayPal users in the U.S. can begin [..] today, with international expansion [..] starting later this month. So immediately out of the box it is exactly NOT for "anyone" and NOT "anywhere". This is contagious: a couple of years ago Gnosis tried to launch their Gnosis Card[1] on Berlin DappCon with the exact same slogan: "Anyone, anywhere" while…

Yeah, it’s textbook USdefaultism.

"Look how global we are… as long as you have a U.S. address, the correct passport, a bank account in a supported country, a smartphone with the correct OS."

Re: PayPal to support Ethereum and Bitcoin

#136

Post by vid »

gus_massa wrote: post #52
scotty79 wrote: post #36

Earlier quoted context omitted.

It's a reason not to use dollars in any form if you are outside of US (and probably inside as well).

Usually the local money is even worst. (Hi from Argentina! Not so bad this year so far...)

Is it really "usually?" I think that people often think of the worse cases (Argentina, etc). Looking at https://data.worldbank.org/indicator/FP.CPI.TOTL.ZG?most_rec..., the US is at 103, there are 102 countries with worse inflation, and 215 with better. From https://www.macrotrends.net/global-metrics/countries/wld/wor..., the Global Average Inflation rate for 2023 was 5.7%, more than the US but not out of control.

I don't know what the effect is called, but suddenly some unrest in some country or inflation in another calls for creating a whole new money system. It seems unreasonable and I'm a bit suspicious of where it comes from.

Re: PayPal to support Ethereum and Bitcoin

#137

Post by xyst »

Tarball10 wrote: post #20

Holding money (or crypto) in PayPal is a terrible idea. They are not a bank, they do not abide by banking regulations. They can lock you out of your account and your money at any time and leave you going in circles with their offshore support. Yes, they are somewhat of a necessary evil if you do any online peer-to-peer buying/selling, since they are the only money transfer service that provides some level of "buyer p…

What’s odd is that Germans LOVE using PayPal. The pseudo banking system that PayPal offers is apparently light years ahead of traditional banking in Deutscheland.

Re: PayPal to support Ethereum and Bitcoin

#138

Post by xyst »

CalRobert wrote: post #3

I thought the whole point of a decentralised ledger was not needing companies like PayPal…

It’s a grift, that’s why. Pedophile protector administration has silently dropped all of the regulatory lawsuits related to digital currency. There is minimal or no oversight right now. The pedophile in chief and family himself have also rug pulled their own tokens and not many people are caring.

I used to work at a few big banks, and because of the "friendly" nature of digital currencies. The traditional banking entities are trying to get in on the grift while they can.

Re: PayPal to support Ethereum and Bitcoin

#139

Post by bdcravens »

CalRobert wrote: post #3

I thought the whole point of a decentralised ledger was not needing companies like PayPal…

Or Coinbase, or Cash App, or Venmo, or any of the other random places you can buy cryptocurrency. If it's not on the blockchain, it's not cryptocurrency; it's just an IOU until you withdraw to a private wallet.

Re: PayPal to support Ethereum and Bitcoin

#140

Post by asim »

Just to echo other sentiments. Don't use PayPal to hold your crypto. Yes it will open the gateway to existing PayPal users and enable them to transact in these currencies. But the reality is that these centralised entities do not operate under an ethical code the way you would expect them to. They make unilateral decisions about what happens to your account and funds without asking you a single question. Be very careful. I was not a banking skeptic before. I have quite happily used my bank account, credit cards, PayPal and everything else. But now. I am not so sure. The level of control they have over your finances and ability to transact is unnerving. What they do with your money you can't control. When they decide you are no longer a favourable actor you can't control. Minimise exposure to these entities please.
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