Will PYUSD break through, or won’t it? Some experts are very enthusiastic about the stablecoin of the PayPalthe new PYUSD. This is the case of analysts at the bank JP Morganwho even believe that the latter could go as far as boosting adoption of Ethereum (ETH). But, at the exact opposite end of the spectrum, other experts, from another bank, believe that PYUSD will only little success. Whom to believe?
Bank of America pessimistic about PYUSD stablecoin
The electronic payments giant PayPal caused a stir on Monday, August 7, when it announced that it was launching its own dollar stablecoin, PYUSDon the blockchain Ethereum. While some have criticized the choice of this crypto network, because of the saturation and high transaction coststhe experts at Bank of America (BoA) are concerned about the fledgling PYUSD for other reasons.
According to a recent report analysts Alkesh Shah and Andrew Moss of the big American bank, PayPal’s stablecoin would only present a low appeal among the choices already available in the cryptosphere. A strong limit its adoptionat least in the short term.
« As long as stablecoins are perceived as safe and accessible on the largest exchange platforms, investors are indifferent in their choice. (…) Investors may have been content to hold non-yielding stablecoins such as Tether (USDT) and Circle (USDC). (…) But yield-bearing stablecoins are likely to become increasingly available and attractive with short-term rates above 5%. »
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PayPal to face competition in digital currency
In addition to these yield-generating stablecoins, PYUSD should also suffer from the arrival of (and hence competition from) central bank digital currencies (MNBC). For if the digital dollar is lagging behindthe digital euro is already under constructionand China’s digital yuan is, so to speak almost finalized (to mention only the main smooth MNBCs).
Nor do Bank of America analysts expect PayPal’s stablecoin to succeed in bringing a little more « regulatory clarity » in the United States. In any case, except for Bitcoin (BTC), the Securities and Exchange Commission (SEC) considers all other cryptos to be securities (securities) under its jurisdiction.
On the other hand, these experts are more optimistic about the characteristics of this digital currency, based on the blockchain technologies from Bitcoin (BTC) and decentralized cryptocurrencies. The PYUSD stablecoin is expected to « promote payment efficiency » and also « improve the customer experience ».
It should also be noted that stablecoins are perceived by some experts (from Bernstein this time) as a sector very promising. The latter even speak of a stablecoin market to reach $3,000 billion by 2028 ! It’s easy to see why PayPal wants at least a small slice of this huge future pie with its PYUSD.
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