PayPal CEO Alex Chriss says stablecoins are not yet ready for mass adoption in the US, pointing to limited consumer incentives and early-stage use cases.
In an interview with Bloomberg TV on Thursday, Chriss acknowledged growing optimism around digital currencies but stressed that practical barriers remain.
“There isn’t a real incentive to drive adoption,” he said, adding that PayPal has started offering rewards to encourage usage.
PayPal Sees Cross-Border Payments as Key to Stablecoin Adoption
While the company remains bullish on the long-term future of stablecoins, Chriss noted that most users today rely on them for international transfers, not everyday payments.
“The first use cases are most likely to be cross-border transactions,” he said. “When you’re moving money and paying large fees, there’s an opportunity to offer a fast, secure and inexpensive mode of currency.”
PayPal made headlines in 2023 as the first major US financial services firm to launch a stablecoin. Since then, the firm has quietly positioned itself to benefit from growing demand for blockchain-based payment solutions, even as much of the sector continues to focus on trading activity.
With SEC Inquiry Closed, PayPal Eyes Future Under New Stablecoin Framework
The regulatory landscape is also evolving. Last week, the US Senate passed the GENIUS Act, a bipartisan bill that establishes a legal framework for payment stablecoins.
If signed into law, it would require one-to-one reserve backing, prohibit interest-bearing tokens, and impose anti-money laundering and consumer protection rules.
“We were a big part of the GENIUS Act,” Chriss said. “We were helping shape that.”
The bill, which passed the Senate by a 68-30 vote, creates a dual regulatory system — federal oversight for large issuers and state-level pathways for smaller players. PayPal, given its size, would likely fall under federal scrutiny.
Chriss’ comments also follow a decision by the US SEC to drop its investigation into PayPal’s stablecoin, PYUSD. The agency closed the inquiry without enforcement action earlier this year, removing a cloud of uncertainty for the company.
As interest in blockchain-based finance deepens, Chriss believes the key to unlocking consumer adoption lies in making crypto as intuitive and rewarding as existing payment platforms.
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