PayPal CEO Chriss: There is insufficient incentive to use stablecoins in the United States, relying on rewards to use PYUSD to break the deadlock.

PayPal CEO Alex Chriss stated in an interview on June 28 that although the application of stablecoins is gradually taking center stage, there are still many obstacles for American consumers in adopting stablecoins, with the main application still being more promising in "cross-border remittances." That said, Chriss emphasized that he remains optimistic about the application of stablecoins and also revealed that PayPal is encouraging users to use them through a rewards mechanism.

Stablecoins have become the preferred choice for cross-border payments and value preservation, with little incentive for U.S. users to use them.

When asked about the future direction of stablecoins, Chriss believes that the first wave of explosive growth for stablecoins should occur in the use case of "cross-border payments." He stated that overseas users often face high transaction fees, and at the same time, the volatility of fiat currencies in certain countries is too great, making it quite difficult for local individuals or businesses to hold US dollars as a hedge. Therefore, stablecoins have become a means of providing a fast and inexpensive payment method, and can also serve as a way to preserve value.

Chriss then pointed out:

"Currently, stablecoins do not have enough incentives to make American consumers use them, because existing payment methods are already very convenient."

In order to solve this problem, the rewards mechanism designed by PayPal can attract users to try the stablecoin payment feature.

Actively increase the usage rate of PYUSD to seize a larger share of the stablecoin market.

After launching its own stablecoin PYUSD in August 2023, PayPal has continued to expand its cross-border payment applications and ecosystem. Here are the main strategies PayPal employs to stimulate the use of its own stablecoin PYUSD:

Provide interest rate incentives: PayPal launches PYUSD with an annual yield of about 3.7% to increase user motivation to hold coins and expand market share.

Multi-chain integration: Expanding PYUSD to the Stellar blockchain, following Ethereum (Ethereum) and Solana, leveraging Stellar's fast transaction processing and low-cost advantages to facilitate cross-border payments and small business financing.

Promoting commercial applications: Allowing over 20 million small and medium-sized businesses to pay suppliers with PYUSD, and adding PYUSD as a global payment option in Hyperwallet to enhance practical usage scenarios.

Combining AI and Financial Operating Systems: Introducing a new AI-based autonomous Financial Operating System, Financial OS, integrated with AI agents and our own stablecoin PYUSD, providing features such as smart wallets and real-time APIs to enhance user experience.

Cooperating to expand the ecosystem: jointly promoting the US dollar stablecoin FIUSD with the fintech company Fiserv, pegged to the US dollar exchange rate, specifically designed for banking financial institutions and commercial application scenarios, simplifying cross-border payments, merchant settlements, and instant payment processes.

PayPal participates in the "Genius Act" legislation and is optimistic about the benefits this law will bring.

Regarding the legislative progress of the stablecoin bill "Genius Act," which has attracted significant external attention, Chriss believes that if the "Genius" bill is successfully enacted, it will bring a new wave of positive impacts to the market. He also emphasized that PayPal was involved in the content design during the formulation of this bill.

Chriss's bullish remarks also echo the expectations of senior officials in the U.S. government. David Sacks, a former PayPal Silicon Valley gangster and the first AI crypto czar in the U.S., has stated in an interview that there are already over $200 billion in stablecoins circulating globally, and if the Genius Act is successfully legislated, it could create trillions of dollars in demand for U.S. Treasuries overnight.

U.S. Treasury Secretary Scott Bessent ( also stated in a previous interview that by 2030, the stablecoin market is expected to surge to $3.7 trillion. The passage of the GENIUS Act will further realize this goal, and the Genius Act is currently under consideration in the House of Representatives.

This article PayPal CEO Chriss: The incentives for using stablecoins in the United States are insufficient, relying on rewards to use PYUSD to break the deadlock. First appeared in Chain News ABMedia.