Bank of America reacts to the launch of PayPal’s U.S. dollar-pegged stablecoin PYUSD and argues that the asset is not likely to be used widely, at least not in the short term.
PayPal’s recent groundbreaking announcement about the launch of its U.S. dollar-denominated stablecoin PYUSD has provoked its share of criticism around the world. While it does seem a significant step towards crypto adoption, some say that PayPal won’t see much success any time soon.
One of the U.S. largest banks, Bank of America, described the main reasons why PayPal USD is not likely to witness immediate adoption in its recent research report.
Competing Against CDBCs
First of all, Bank of America’s analysts Alkesh Shah and Andrew Moss explained that the PayPal’s stablecoin might face intense competition on the market:
“Over the longer term, we expect PYUSD to experience additional adoption headwinds as competition from central bank digital currencies (CBDCs) and yield-bearing stablecoins increases
We współpracy z: https://cryptodaily.co.uk/2023/08/bank-of-america-predicts-pyusd-wont-be-easily-adopted
