JAKARTA - In a bold move that has attracted the attention of the financial world, PayPal Holdings Inc recently announced the launch of its new stable cointer, PayPal USD (PYUSD). This effort marks PayPal's breakthrough in changing the way cross-border payments are made.
Stablecoin is a cryptocurrency category designed to reduce price volatility by binding its value on stable assets such as fiat and commodity currencies. PYUSD, a stable coin from PayPal, aims to provide users with no price volatility that is often seen in assets such as Bitcoin (BTC) and Ethereum (ETH).
One of the main promises of PYUSD is to simplify the cross-border payment process (cross-border) and improve user experience. Traditional cross-border transactions often lead to delays (delays), high costs, and complexity due to intermediaries and currency conversion. With PYUSD, PayPal expects a future where these barriers are overcome, allowing cross-border transactions to occur instantly at minimal cost.
Nonetheless, Bank of America analysts Alkesh Shah and Andrew Moss expressed different views in their research reports. They suggest that PYUSD's direct adoption may not be as big as expected. Their report underscores some of the main challenges that PYUSD could face in its adoption journey.
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One of the barriers recorded is the increasing competition from the Central Bank Digital Currency (CBDC). The government is now also exploring their own digital currency, which can shift the landscape of private stable currency adoption such as PYUSD.
In addition, changing interest rates can affect investor preferences for stablecoins. If a high-result stable coin comes up, it could change the dynamics of interest and investment from PYUSD.
Stark also dived into regulatory aspects in the introduction of PYUSD. While the impact may not be large on the systemic risk in traditional markets, the report highlights the potential regulatory issues if non-banks are prohibited from issuing stablecoins.
Although adoption challenges may persist in the short term, the PYUSD trajectory can evolve along with market change dynamics. The launch of the PayPal stablecoin (PYUSD) is a breakthrough development in the world of stable and digital currencies, and its potential to improve payment efficiency and customer experience remains significant.
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