In this article, we will dive deep into the Paxos ecosystem. Pax Dollar digital currency or stablecoin is one of the cryptocurrencies on the Ethereum blockchain. In addition, this currency is linked to a digital or fixed currency. It also can exchange goods.

On September 14, 2018, this currency was issued by Paxos Trust company and the New York State Department of financial services overseas on it. The US securities and exchange commission has approval to currency to protect customers’ capital. Tax standard token has made instant transactions by providing digital alternatives. Charles Kaskana, the CEO and co-founder of Paxos, stated that the goal of stablecoin is to provide financial markets with the ability to conduct transactions through backed assets.

What is a PAX?

The Pax Dollar is a stablecoin that allows any customer to exchange US dollars for PAX tokens. The main goal of this platform is to stabilize the dollar with blockchain technology. Pax dollar can help to improve the larger financial ecosystem through the certain of a frictionless global network. All digital assets can be activated quickly with high flexibility and accessibility. Its goal is to create a future where digital assets, commodities, and securities can be transferred anywhere, anytime. Paxos, the company behind the Paxos standard stablecoin, has announced that it is changing the name of its crypto assets. In the wallet as USDP. Other than the name USDP is essentially the same as Pax.

How does PAXOS work?

The Pax is designed for a variety of uses. The main use of this token is to limit fluctuations in crypto assets, eliminate frictions from cross-border transactions, and provide a means of secure payments on cryptocurrencies and other blockchain-based assets. Pax expects customers to use this cryptocurrency for their payments and the other people, especially those in countries with volatile national currencies; this currency could be a store of sustainable value. Here’s how PAX crypto works:

1. The buyer sends at least $ 100 through Paxos.com to a bank account maintained by the token issuer – Paxos Trust Company.
2. The issuer then creates the equivalent of a PAX coin through a smart PAX contract.
3. These new PAX tokens are delivered to the buyer’s account while the US dollar is safely kept in the bank account.
4. The same process is used in reverse when repurchasing PAX for USD. Once redeemed, these PAX tokens go out of circulation immediately.

Why should we use stablecoins?

Stablecoins are a new class of digital currencies supported by stable and real assets. Paxos stablecoin combined the stability of the US dollar with the efficiency of blockchain technology. we use a stablecoin for the following reason:

• settlement: the user can settle in real-time,24/7, and outside traditional banking hours.
• Commerce: stablecoin with reduced friction and fees can efficiently facilitate goods and services.
• access: open ecosystem you can create liquidity and utility on your platform.
• holding: Users can keep US dollars on their platform without requiring a USD bank account.

Advantages of PAX

PAX has many benefits. One of the most substantial advantages is that the New York State Department of financial services regulates Pax Dollar. It holds cash and cash equivalents, and customers ‘funds are always safe. You can move money anytime with all the smartphones across borders. The company allows creating an account and sending money across crypto markets with a mobile phone. PAX provides financial access to everyone, even to the people who live worldwide and suffer without a bank account. Another feature of stablecoin is changing this currency directly to US dollars. There is no need for any other intermediary. The point is that after you sell your tax tokens and convert them into Dollars, the PAX company burns the repurchased tokens with a smart contract.

How to buy PAX Dollar?

1. compare crypto exchanges: you can find exchanges with the features you want, such as low fees, ease-of-use, or 24 hours customer support.
2. create an account: you need to verify your email address and identity for creating an account.
3. make a deposit: After verification, you can choose the best payment method and deposit the dollar. Credit card cryptocurrency PayPal is all accepted.
4. buy Pax Dollar: you can exchange your fans with Pax Dollar, then enter the amount you want to purchase. Also, you can withdraw your Pax Dollar to your wallet.

Is PAX standard token different from other stablecoins?

there are some similarities between a stable coin and other tokens, which we will mention below

• regulation: Paxos is under the New York department of financial services.
• guaranteed cash deposits: each Paxos standard bank account is held by US Bank.
• audited: each standard Paxos bank accounts are overseen by US Audit Firm Withum.
• security: Paxos monitors transactions and employs surveillance partners for an extra layer of compliance.
• daily purchases and redemptions: tax tokenization and redemptions request or processed regularly to facilitate the capital transfer.

· no fee: insurance and redemption of standard Paxos tokens are free of charge. These features mentioned above are similar to PAX and other stablecoin and are supported by the US dollar. However, there is a notable difference between Pax and its rival: its different partner organization and more efficient operations due to its “processing windows.”