- Investors don’t care which stable coins to hold, the bank said in a report.
- According to analysts, PYUSD will not withstand competition from CBDC and other stablecoins.
The launch of the PYUSD stablecoin will help improve payment efficiency, but the asset’s distribution is likely to be limited in the near term, CoinDesk reported, citing a Bank of America analyst report.
“In the longer term, we anticipate PYUSD will face additional barriers to adoption as competition from central bank digital currencies (CBDCs) and other stablecoins that generate revenue intensifies,” said analysts Alkesh Shah and Andrew Moss.
They noted that investors don’t care which stablecoins are in their portfolio as long as they are safe and available on leading trading platforms.
Bank of America also doesn’t expect the launch of PYUSD to lead to regulatory clarity because the issuance of stablecoins “does not change the systemic risk to traditional markets.”
“PYUSD is likely to target another market that has remained largely untapped so far – remittances using blockchain technology,” the report said.
Remember, payment service provider PayPal launched its own PYUSD stablecoin on Aug. 7. Recently, analysts at JPMorgan said that a stablecoin from PayPal could benefit the Ethereum network.