Bitcoin BitPay payment platform will now allow payments with the Paxos Standard token (PAX), which defines "the fastest growing stablecoin and the highest trading volume of any stablecoin supported by US dollars".
Although BitPay has previously integrated a number of different cryptocurrencies into its platform, a widely trafficked stablecoin (the first of its kind to see support from the payment platform) has some distinct advantages, namely regulatory compliance and a stable value. As each PAX token represents $ 1, traders and customers may feel more comfortable in making token transactions in place of other cryptocurrencies, which are often subject to volatile price fluctuations.
An important credential that accompanies the name of PAX is regulatory compliance, as it is "issued directly by a subsidiary and controlled company and is approved for issue by the Financial Services of the New York State Department". Although there are several relevant stablecoins in space, Paxos is the first to have this level of authenticity.
The release has commented little on the future plans of the new partnership of BitPay, but the adoption of a leading stablecoin is a logical next move. The Stablecoin have recently attracted the attention of space, with more and more attempts to launch cryptocurrencies that can successfully maintain a peg with fiat.
Combining the most important cryptocurrency sales platform with a fast-growing and well-regulated stablecoin is a win-win, which would ideally attract more merchants and consumers to the platform now having a stable cryptocurrency at the price to be negotiated.