PYUSD stablecoin’s new privacy feature, “confidential transfers”, has generated significant buzz in the crypto community as PayPal make the dollar-pegged cryptocurrency available on the Solana blockchain.
The payment giant announced the move to Solana on May 29, stating it was the next step in achieving its aim of making the stablecoin faster and cheaper to use.
Jose Fernandez da Ponte, SVP of PayPal’s Blockchain, Crypto and Digital Currencies group, stated:
“With PayPal USD, we aim to revolutionize commerce again by providing a fast, easy, and inexpensive payment method for the evolving digital economy…Launching PYUSD on the Solana blockchain supports our goal of enabling a stable digital currency designed for commerce and payments.”
However, the new privacy feature, “confidential transfers,” which was notably not mentioned in the payment giant’s announcement, has been the source of excitement in the crypto community on social media.
The feature, as outlined in a Solana blog post on the same day as PayPal’s announcement, will allow merchants to conceal transaction amounts for their consumers while remaining visible to relevant parties like merchants and regulators.
Bitcoiner Udi Wertheimer remarked on X (formerly Twitter) that confidential transactions are a long-discussed but unrealized privacy tech, and PayPal seemingly beat Bitcoin developers to implement it.
ok this is wild
paypal just launched its PYUSD stablecoin on solana (yeah i know. yawn)
but it seems to have a privacy feature they call “Confidential Transfers” that hides the transaction amounts of transactions????
this sounds a lot like “confidential transactions”, a… pic.twitter.com/BMqvWTBoOC
— Udi | BIP-420 🐱 (@udiWertheimer) May 29, 2024
Helius Labs CEO Mert Mumtaz highlighted Solana’s native support for confidential transfers and token programmability as a “game-changer” beyond just speed and scalability benefits.
importantly
Paypal didn’t expand to Solana purely for speed
Solana also allows confidential transfers and token programmability natively on the L1 itself
confidential transfers alone are a game-changer pic.twitter.com/FHipaz2Zd6
— mert | helius | hSOL (@0xMert_) May 29, 2024
Notably, Sheraz Shere, GM of Payments at Solana Foundation, welcomed PayPal’s move, stating that
“The Solana network’s speed and scalability make it the ideal blockchain for new payment solutions… Continued adoption from industry participants like PayPal helps realise the next generation of fintech innovation.”
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PYUSD, issued by Paxos and primarily backed by U.S. Treasury reverse repo agreements, was originally launched on Ethereum in August 2023 before this Solana integration.
The new feature reflects a broader industry push towards enhancing privacy and security, and it is expected to potentially pave the way for wider adoption of such privacy-focused technologies.
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