If paypal can make these "gold coins" look like real coins then they can freely mint their own coins and trade them for real assets. When people cut them open and find that they are made of lead then it will be too late, the owners will be long gone.
It also lets them take real money off you and give you casino chips that you can send around. The chips are meaningless so they never actually have to give your real money back as long as they stay in the casino. If you do ask for them back, they've been collecting interest on them the whole time so they'll double up either way.
> When people cut them open and find that they are made of lead then it will be too late, the owners will be long gone.
This isn't true. This is regulated. PayPal will be required to back this 1-1 with cash and treasury bonds. Unless you're saying that PayPal will commit fraud.
> If you do ask for them back, they've been collecting interest on them the whole time so they'll double up either way.
Yes stablecoins are in my opinion one of the most lucrative ideas right now. They can make billions just from treasury yields if they capture a large share of the market.
It also lets them take real money off you and give you casino chips that you can send around. The chips are meaningless so they never actually have to give your real money back as long as they stay in the casino. If you do ask for them back, they've been collecting interest on them the whole time so they'll double up either way.