PayPal’s stablecoin won’t enjoy widespread popularity?
In early August, PayPal announced its intention to issue its own steblecoin backed by the US dollar. The token will be deployed on the etherium network and its issuance will be handled by Paxos.
Bank of America believes that the PYUSD stebelcoin will not enjoy widespread popularity in the global market.
According to experts of the financial giant, the most attractive instrument for cross-border payments will be central bank digital currencies (CBDC).
Bank of America doubts that the PYUSD token will contribute to accelerating the legalization of stablecoins in the US. The lack of regulatory legislation will slow down the adoption of PayPal’s stablecoin.
The bank’s note notes: “Over the longer term, we forecast that PYUSD will face new distribution challenges. Stablecoin will not be able to withstand competition from central bank digital currencies.”