- Bank of America's research report suggests that PayPal's new stablecoin, PayPal USD (#PYUSD ), is unlikely to gain significant adoption in the short term.

- Despite offering payment efficiencies and improved customer experiences, PYUSD faces competition from central bank #digital #currencies (CBDCs) and yield-bearing stablecoins in the long run.

- Yield-bearing stablecoins with rates over 5% are expected to become more attractive compared to non-yield bearing options like #USDT and USDC.

- Investors are expected to prefer safe and easily accessible #stablecoins on major trading platforms, regardless of the specific choice.

- The launch of PYUSD is not projected to bring rapid regulatory clarity or alter systemic risk in traditional markets, according to Bank of America.

- PYUSD could encounter regulatory challenges if stablecoin issuance becomes restricted to banks.

- PayPal's entry into the stablecoin market targets blockchain-enabled asset transfers, payments, and remittances in untapped areas.

- The report indicates that widespread adoption of PYUSD might be gradual due to competition and possible regulatory obstacles.

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