Review on Paxos Standard by Gabriel Medina

Name: Paxos Standard
Item: Paxos Standard
Rating: 5

October 20, 2020

Stablecurrency as an alternative to Tether

Paxos Standard (PAX) is a stablecoin created on the Ethereum network and since its inception it was listed on Binance. This digital currency is regulated by the New York Department of Financial Services (NYDFS), making it safe.
 It is a proposal for a digital alternative to cash with instant transaction settlement and repayment capacity. It was designed in the ERC20 protocol, therefore, it provides benefits of encryption assets, such as immutability and decentralized accounting. This cryptocurrency could be compared with other stablecoins (Tether, Gemini or TrueUSD), but without a doubt, the most similar or similar is Gemini, because they are regulated by a state banking regulation.
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Paxos Standard offers a cryptocurrency that combines the trust and stability of fiat currency and an instance of digital assets, all this to take advantage of what blockchain technology has and improve the functions for its support. It is designed to take advantage of new developments in blockchain technology to improve money functions, in addition to having the support of an organization that will make it totally reliable.

PAX being backed and anchored to the US dollar represents being an alternative to the usual Tether has a stable purchasing power, so we can exchange this cryptocurrency in USD as many times as we want.

The PAX team took advantage of launching this project when Tether had problems in 2018 due to Tethers printing. The team tries to offer an alternative that is as accessible, safe and efficient as possible.

Among its characteristics we can find:

It is regulated by the New York State Department of Financial Services.
Cash deposits are guaranteed by US banks.
Bank accounts are supervised.
It has transaction surveillance and monitoring partners that increase security as a layer of compliance.
Freely and frequent movement of funds is allowed thanks to the daily buy and sell windows.
No commissions are charged.

For the future, the project wants to expand and be used to make payments and deposits outside the United States. The objective is in the countries where the most unstable national currencies are found.
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Pros

Regulated and secure cryptocurrency backed by US dollars. Being pegged to the dollar it is obviously stable and represents a great alternative to the usual Tether.

Cons