Welcome back to The Breakdown with me, NLW.

It's a daily podcast on macro, Bitcoin, and the big picture power shifts remaking our world.

What's going on, guys? It is Tuesday, August 8th, and today we are talking about PayPal's new stable coin.

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All right, friends, today we are talking about the big PayPal news, which was announced yesterday,

and it hits at what I think is one of the biggest themes of the year, which is TradFi coming into

the absolute utter wreckage of this industry after the last year plus of bad behavior and positioning themselves

to take over like adults compared to some children who have lost their privileges. We'll get

into that a little bit more though. So first let's talk about details and the reactions from the

community. So PayPal is launching PayPal USD or PYUSD, a stable coin that is issued by Paxos.

It will be fully reserved using bank deposits, short-term treasuries, and other cash-like instruments.

Initially, the stable coin will be only available to U.S. customers.

In one of the bigger parts of the announcement, PiUSD is an Ethereum-based ERC-20 token.

That means it will have compatibility across the

Ethereum ecosystem from day one. Customers will be able to transfer the stable coin between

PayPal and Ethereum wallets. Person-to-person payments will be enabled. The stablecoin will be

integrated into the existing PayPal checkout process, and it will also be convertible into

other cryptocurrencies already available on PayPal's

platform. Now, while the stable coin will be redeemable for US dollars on a one-to-one basis,

...