PayPal CEO: "Stablecoins lack consumer incentives... Adoption will be slow"

Doohyun Hwang

Summary

Alex Chriss, CEO of PayPal, assessed that the introduction of stablecoins in the U.S. is facing considerable barriers and that adoption is expected to be slow.
CEO Chriss noted a lack of clear user incentives through rewards and incentives and stated that the first meaningful use case will be for cross-border remittances.
He stated that the recently passed U.S. congressional bill related to stablecoins will greatly help expand virtual asset consumption.

Alex Chriss, the CEO of PayPal, diagnosed that "the adoption of stablecoins in the U.S. still faces significant barriers, and it will take time for them to spread." PayPal became the first global financial company to launch its own stablecoin, 'PYUSD', in 2023.

On the 26th (local time), in an interview with Bloomberg TV, CEO Chriss stated, "From the consumer's perspective, there is currently a lack of clear incentives to use stablecoins. PayPal is encouraging adoption through user incentives such as rewards."

He added, "There are high expectations for the future of stablecoins. The first significant application will be in cross-border remittances," and continued, "International transfers incur many fees, but stablecoins can become a fast, secure, and cost-efficient means of currency exchange."

He also expressed great expectations about the recently passed U.S. congressional bill related to stablecoins. CEO Chriss emphasized, "If the 'GENIUS Act', which passed the U.S. Senate earlier this month, is enacted, it will greatly help expand the use of virtual assets," and added, "We are one of the key parties that co-designed this legislation."