Stablecoins are the answer to accessing a usable form of digital currency in today’s cashless society. However, not all stablecoins are equal or even viable, in terms of stability.
In this article, we will look at some comparisons to understand the best possible stablecoin options for personal and professional use. Starting with Paxos Standard Token (PAX) and SameUSD (SUSD)
What is PAX?
PAX is a stablecoin based on the Ethereum blockchain as an ERC-20 standard token. It’s one of the regulated stablecoins pegged 1:1 to the US dollar.
Pax users benefit from instant worldwide transactions, decentralized accounting, 24-hour availability, accessible 365 days a year. Importantly, PAX offers immutability, which is the point of crypto; without immutability, you may as well stay in mainstream banking.
What is SameUSD?
SameUSD is a stablecoin represented by the Samecoin ecosystem. It acts as a spendable currency with matching stable values and fiat-like numbers, making it easy to trade and, more importantly, easy to understand.
Samecoin is an ERC-20 and BEP-20 utility token stacked to the dollar at 1 SUSD = $1.00 backed by a basket of stablecoins.
SameUSD users also benefit from instant worldwide transactions, decentralized accounting, 24/7 availability, accessibility, and all-important immutability.
Now we understand what the currencies are and their fundamental core values let’s look at the differences between them.
SameUSD vs Paxos Standard Token (PAX)
The first noticeable difference is that PAX has a high minimum conversion amount, $100, which’s a lot when you consider that SameUSD has no minimum, so if you want to convert $5, you can.
SameUSD has a verifiable reserve backed by a reserve of stablecoins and offers an incentive to account holders in the form of a cashback.
Cashbacks work in the same way as regular store-style incentives. For instance, if you mint or make a payment with SameUSD via SamePay (the app or vehicle used to buy SameUSD), you are rewarded. The rewards do not exist in PAX.
Comparative features of SameUSD vs Paxos Standard Token (PAX)
| Paxos Standard Token | SameUSD | |
| Ticker | PAX | SUSD |
| Current Price | $1.00 | $1.00 |
| Collateral Type | Fiat | Stablecoins |
| Blockchain | Ethereum | Ethereum and BSC |
| Maximum Supply | N/A | N/A |
| Base Currency | USD | USD |
| Redemption Amount | $100 | $1 |
Other comparatives worth noting
| Incentives | None | Cashback |
| Access | Standard Access | Fast Access via App |
Take Away
There’s little doubt that cryptocurrency is the way forward, especially in countries where regular banking facilities are unstable, and the majority of the population doesn’t hold a bank account.
The world is moving away from cash, and in the next five years, all financial transactions will be digital and therefore cashless in the traditional sense.
With so little between PAX and SameUSD, you have to look at the user’s structure, fees, and value. The significant differences are clearly noted in the table above, but it’s also in wallet compatibility or ease of storage where SameUSD wins.
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Source: https://www.cryptopolitan.com/sameusd-vs-paxos-standard-token-pax/
