Bank of America: PYUSD unlikely to see widespread adoption anytime soon

2023/08/11 11:35

Bank of America (BAC) stated in a research report that the launch of PayPal's stablecoin PYUSD will improve payment efficiency and enhance customer experience, but the adoption of cryptocurrencies is unlikely to have a significant impact in the short term. The analyst wrote: "When interest rates are close to zero, investors may hold stablecoins that do not generate income, such as Tether (USDT) and USD Coin (USDC), but as short-term interest rates exceed 5%, stablecoins that generate income may become more and more attractive." The report also added that PYUSD may target a different market that has essentially not yet been developed, "asset transfer, payment, and remittance supported by blockchain technology."
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