Bank of America: PayPal Stablecoin PYUSD Unlikely To See Wide Adoption Anytime Soon

Odaily Planet Daily News Bank of America (BAC) said in a research report on Thursday that the launch of PayPal's stable currency PYUSD will increase payment efficiency and improve customer experience, but its adoption is unlikely to have a significant impact in the short term. Bank of America analysts Alkesh Shah and Andrew Moss wrote, “In the longer term, we expect PYUSD to face more adoption headwinds as competition from central bank digital currencies (CBDCs) and yielding stablecoins intensifies.” Analysts pointed out, "When interest rates are close to zero, investors may well hold non-yielding stablecoins, such as USDT and USDC; but as short-term interest rates exceed 5%, yield-generating stablecoins may change. It’s getting more and more attractive.” The report added that PYUSD may target a different market that has been largely untapped until now, “blockchain technology-enabled asset transfers, payments and remittances.” (CoinDesk)