The prices of Bitcoin and cryptocurrencies have experienced significant fluctuations over the past few months due to increasing economic and regulatory pressures. Traders are now gearing up for a seismic event on Wall Street in the crypto markets worth $15.5 trillion in September. This comes after an insider at the U.S. Securities and Exchange Commission (SEC) warned buyers of Bitcoin and cryptocurrencies about the Binance platform, suggesting that Elon Musk could turn X (Twitter) into an updated version of the electronic bank PayPal called "Pi-Bi-El."
It appears that Musk is preparing to unleash a massive bombshell in the crypto markets should he decide to announce a new payment system, an updated version of the electronic PayPal bank that offers low transaction costs compared to credit cards and generates income through user data usage. Earlier this month, media reports indicated that Elon Musk denied the possibility of X adding an integrated trading platform within the app as part of a plan to transform the app into the world's financial data giant. He continues to insist that X will never launch its cryptocurrency but rather serve as a competitor to Bitcoin, Ethereum, Ripple, and his favorite Dogecoin cryptocurrency.
It's worth noting that PayPal's bank was launched by Elon Musk's payments giant X.com when it merged with Confinity in March and introduced a stablecoin linked to the U.S. dollar called PYUSD in hopes of success where Meta failed with its stablecoin Libra, which later became Diem.
Despite the hype surrounding PayPal's new stablecoin, PYUSD, there appears to be limited adoption and wallet holdings among users. The overall enthusiasm for X following in PayPal's footsteps on Wall Street might be negatively impacted, potentially leading to delays or even the cancellation of Elon Musk's plans. This potential lack of demand for PYUSD among cryptocurrency users, in light of the availability of other alternatives, may be attributed to PayPal's focused targeting of specific regions and countries. Current blockchain data suggests that approximately 90% of PYUSD resides in wallets controlled by the issuer, Paxos, while exchange holdings make up 7% of the total supply, with traders holding just 3%.
Meanwhile, BlackRock is gearing up to establish the much-anticipated American Bitcoin exchange-traded fund (ETF), often referred to as the "approval seal." The world's largest asset management company has generated significant interest on Wall Street regarding Bitcoin and cryptocurrencies by applying for a Bitcoin ETF in June of the previous year, further supporting the ascent of Bitcoin as a leading player in the cryptocurrency market.
