PayPal has stated that it experienced an internal technical error in issuing the PYUSD cryptocurrency, a stablecoin pegged to the US dollar. This error led to a massive injection of PYUSD on the Etherscan platform, observed by analysts. The company Paxos, which issues PYUSD, corrected the mistake after about 20 minutes, ensuring that there was no security breach and that customer funds are safe. Although PYUSD is promoted as a stable currency, backed by dollars and treasury securities, the incident highlighted that the stability guarantees depend on PayPal and its attestation reports. It was also emphasized that the amount of PYUSD issued would exceed the global GDP, raising questions about the sustainability of this currency. PYUSD is now the sixth largest stablecoin, with a market capitalization of over 2.6 billion dollars.
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