PayPal P2P Crypto, Google AI Payments & Miner Shift
Crypto Biz: P2P Payments, AI Integration, and Mining Evolution
The cryptocurrency landscape is evolving from pure speculation towards practical applications and services. Here's a breakdown of key developments:
PayPal Enables P2P Crypto Transfers
PayPal is expanding its presence in the digital asset space by rolling out peer-to-peer (P2P) cryptocurrency transfers. This builds upon the success of its PYUSD stablecoin, which has exceeded $1 billion in market capitalization.
PayPal's new feature, called PayPal links, allows US users to send and receive cryptocurrencies directly within PayPal and Venmo using one-time links. This eliminates the need for external exchanges for simple transfers. Notably, personal crypto transfers between friends and family within the US will not trigger 1099-K tax reporting.
Google's AI Payment Protocol Integrates Stablecoins
Google is piloting an open-source payment protocol designed for AI agents. This protocol features built-in support for stablecoins, highlighting the potential role of dollar-pegged cryptocurrencies in the future web economy.
The stablecoin functionality was developed in collaboration with Coinbase and consulted by the Ethereum Foundation. This initiative complements Google's Agent2Agent Protocol, aiming to facilitate seamless communication and transactions between AI agents. The payment protocol already has support from over 50 technology partners.
Bitcoin Miners Pivot to Data Centers and AI
Facing tighter margins due to rising costs and increasing mining difficulty, some Bitcoin miners are strategically pivoting towards data center and AI infrastructure. This shift is reflected in the recent surge in share prices of several mining companies.
According to The Miner Mag, public miners like Cipher Mining (CIFR), Terawulf (WULF), Bitfarms (BITF), Hive Digital Technologies (HIVE), and Iris Energy (IREN) have experienced substantial gains (at least 73%) over the past month, outperforming Bitcoin itself.
Despite increasing mining difficulty, projected to climb another 4.1%, miners are adapting to maintain profitability.
Bitwise Seeks to Launch Stablecoin, Tokenization ETF
Bitwise has filed with the SEC to launch a new exchange-traded fund (ETF) focused on stablecoins and tokenization. This ETF aims to capitalize on the growing adoption of blockchain technology in these areas.
The proposed fund will track an index of companies involved in stablecoins, payment processing, and crypto exchanges. The ETF will also include regulated exchange-traded products with exposure to Bitcoin and Ether.
Stablecoins have become a major use case in crypto, boasting over $300 billion in circulation. Tokenized assets are also gaining traction, attracting interest from traditional financial institutions like BlackRock and Franklin Templeton.