The launch of PayPal USD (PYUSD), a stablecoin, will improve payment efficiency and customer service quality, but the asset’s rollout is unlikely to be widespread, according to Bank of America analysts, as CoinDesk reports.
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Analysts say investors are indifferent about which stablecoins to hold if they are perceived as safe and available on the largest trading platforms.
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\”In the long term, PYUSD will face additional challenges in adoption, as competition from central bank digital currencies and yield-generating stablecoins intensifies,\” the report said.
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BoA does not believe that the launch of the asset will lead to ‘accelerated regulatory clarity’. On the contrary, PayPal will face some difficulties if nonbank entities are barred from issuing ‘stablecoins’.
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Experts suggested the company is likely targeting the payments and remittances market using blockchain technology, which had previously remained in the shadows.
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On August 7, the payments giant announced the launch of the USD-backed stablecoin PYUSD built on the Ethereum blockchain. The issuer of the coin was Paxos, an infrastructure blockchain company.
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«Stablecoin» has sparked a mixed reaction within the crypto community. Some said that PYUSD would facilitate broad adoption of digital assets, while others pointed to centralization risks.
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Earlier, U.S. Representative выразила deep concern about the PayPal stablecoin launch. She pointed to the lack of a regulatory framework for such assets.
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Nikos Panigirtzoglou, a JPMorgan analyst, заявил that PYUSD could benefit Ethereum, increasing the total value of assets locked in the network.