You can withdraw Paypal USD and self custody it onchain, and use it with the same flexibility as any ERC20 token.
But this token does have code to freeze your balance of itself, an action controllable by the token contract administrators, which is Paypal.
this is seen in other similarly structured stablecoins.
but the fungibility of being an erc20 token means offloading it is very easy too, there would therefore be no limitations on transfer amounts, no delay in having liquidity based on the time of day or day of the week. No need to rely on Paypal’s interest in redeeming the token for cash again, as you could just swap them onchain for something else more liquid or more speculative the instant you wanted.
But this token does have code to freeze your balance of itself, an action controllable by the token contract administrators, which is Paypal.
this is seen in other similarly structured stablecoins.
but the fungibility of being an erc20 token means offloading it is very easy too, there would therefore be no limitations on transfer amounts, no delay in having liquidity based on the time of day or day of the week. No need to rely on Paypal’s interest in redeeming the token for cash again, as you could just swap them onchain for something else more liquid or more speculative the instant you wanted.