“Over the longer term, we expect PYUSD to face additional adoption challenges as competition from central bank digital currencies (CBDCs) and revenue-generating stablcoins intensifies,” the analysts wrote.
Investors don’t care at all what kind of steblecoins to hold as long as the assets are “considered safe and available on major trading venues,” according to a report from one of the largest US banks.
Bank of America doesn’t expect the launch of PYUSD to lead to “accelerated regulatory clarity” because the issuance of a steblecoin “does not change the systemic risk to traditional markets”. However, steyblokin could face regulatory hurdles if non-banking organizations are ultimately prohibited from issuing such stable coins.
Payments giant PayPal recently announced that it is entering the cryptocurrency market for the first time with its own dollar-linked coin, PayPal USD. The token based on the Efirium network will be available first on PayPal and then on Venmo, and can be exchanged for dollars at any time. The company unveiled a cryptohub that allows select users to store cryptocurrency and conduct transactions.
It was recently reported that scammers are trying to trick unsuspecting users by profiting from PayPal USD. More than 60 fake PYUSDs have already appeared online.