2023-08-12 11:30:48
“Bank of America” said that the introduction of “Paypal Holding” company for a stable currency will increase the efficiency of payment operations and improve customer experience, but it is likely to adopt the currency on a small scale in the near term.
The bank added that the main reasons for this are incompatibility with cryptocurrency wallets, the presence of cross-currency pairs to trade, or a new functionality.
The bank’s strategists, Alkesh Shah and Andrew Moss, predicted in a note on Thursday that PayPal USD will face additional hurdles in its long-term adoption, in light of competition with central bank digital currencies and an increasing number of yielding stablecoins.
They added, “Investors may accept holding non-yielding stable currencies, such as (Tether) and (USDC), when interest rates are close to zero, but it is more likely that yielding stable currencies will increase in availability and attractiveness in the short term with interest rates exceeding 5 percent.” %”.
In the note, the two analysts refer to stablecoins issued by Tether Holdings and Circle Internet Financial.
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