Moneyness: There are now two types of PayPal dollars, and one is better than the other

Announcement from PayPal launching US dollar Stablecoin. They have launched this with Paxos and it is worth looking at given the deep "crypto winter" we are in. Koning writes up his view on which of these assets, regular US dollars held at PayPal, or PyUSD Stablecoins, are better.

It's the PayPal dollars hosted on crypto databases that are the safer of the two, if not along every dimension, at least in terms of the degree to which customers are protected by: 1) the quality of underlying assets; 2) their seniority (or ranking relative to other creditors); and 3) transparency.

The more efficient and stronger technology here is crypto. There is a long way to go, but digital currency will be far superior in something like PayPal, and their push here with this stablecoin is a good indication of that value.