PayPal CEO Alex Chriss stated in an interview on 6/28 that while stablecoins are gradually entering the mainstream, there are still significant barriers to adoption for US consumers, with cross-border remittances being the most promising application. Despite this, Chriss remains optimistic about stablecoin usage and revealed that PayPal is encouraging user adoption through incentive mechanisms.
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ToggleStablecoins as the First Choice for Cross-Border Payments and Value Preservation, with Low Incentives for US Users
When asked about the future of stablecoins, Chriss believed that the first wave of adoption would likely occur in cross-border payment scenarios. He noted that overseas users often face high transaction fees, and in some countries with volatile local currencies, it's challenging for locals or businesses to hold US dollars as a hedge. Therefore, stablecoins provide a fast and cheap payment method that can also serve as a store of value.
Chriss subsequently pointed out:
"Currently, there are not enough incentives for US consumers to use stablecoins because existing payment methods are already convenient."
To address this issue, PayPal has designed an incentive mechanism to attract users to try stablecoin payment features.
Actively Increasing PYUSD Usage Rate, Seizing the BTC of the Stablecoin Market
After launching its own stablecoin PYUSD in August 2023, PayPal has continuously expanded its cross-border payment applications and ecosystem. Here are the main strategies to stimulate PYUSD usage:
- Provide Interest Rate Incentives: PayPal offers an approximately 3.7% annual return to increase user motivation to hold the coin and expand market share.
Multi-Chain Integration: Expanding PYUSD to the Stellar Block, following ETH and Solana, leveraging Stellar's fast transaction processing and low-cost advantages to promote cross-border payments and small business financing.
Promote Business Applications: Enabling over 20 million small and medium-sized merchants to pay suppliers with PYUSD and adding PYUSD as a Hyperwallet global payment option to enhance practical use cases.
Combining AI and Financial Operating System: Launching a new AI-based autonomous Financial OS, integrating AI agents with PYUSD, and providing smart wallets and real-time APIs to enhance user experience.
Collaborative Ecosystem Expansion: Partnering with fintech company Fiserv to launch the US dollar stablecoin FIUSD, designed with a US dollar-equivalent exchange rate for banking institutions and commercial application scenarios, simplifying cross-border payments, merchant settlements, and instant payment processes.
PayPal Participates in the 'Genius Act' Legislation, Sees Potential Benefits
Regarding the ongoing legislative process of the stablecoin bill 'Genius Act', Chriss believes that if 'Genius' is successfully legislated, it will bring a new wave of benefits to the market, emphasizing that PayPal has also participated in the content design of the bill.
Chriss's positive outlook aligns with expectations from high-ranking US government officials. David Sacks, a former PayPal PayPal Silicon Valley Mafia member and the first US AI crypto czar, previously stated that with over $200 billion in stablecoins already in circulation, successful legislation of the Genius Act could potentially create trillions in US Treasury demand overnight.
Treasury Secretary Scott Bessent previously stated that the stablecoin market could reach $3.7 trillion by 2030. The passage of the GENIUS Act would further facilitate this goal, and the bill is currently under review in the House of Representatives.
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