PayPal CEO Alex Chriss emphasized the current challenges facing stablecoin adoption in the United States, citing a lack of meaningful incentives for consumers to switch from traditional payment methods. Speaking on Bloomberg TV on June 26, 2025, Chriss pointed out that despite the market for stablecoins standing at $257 billion and projected to nearly double by late next year, retail adoption in the US remains limited due to consumers’ preference for credit and debit cards, which come with established reward systems.
PayPal launched its dollar-pegged stablecoin, PYUSD, in August 2023 with Paxos, operating as an ERC-20 token on Ethereum and expanding to platforms like Venmo. However, PYUSD's market share remains modest at approximately 0.4 percent, representing $981 million. To boost consumer interest, PayPal introduced a 3.7% annual yield on PYUSD balances and is developing rewards programs designed to offer tangible benefits to users, aiming to bridge the gap between blockchain-based payment advantages and consumer expectations.
Chriss also highlighted the regulatory momentum with the Senate passing the GENIUS Act, a bill that could establish the first federal framework for dollar-pegged stablecoins, pending House consideration alongside the CLARITY Act. Regulatory clarity is viewed as essential for scaling stablecoin adoption, particularly as the market expands beyond crypto trading into general payment systems.
Beyond US domestic transactions, PayPal sees significant potential for PYUSD in cross-border payments, targeting the high global remittance fees averaging over 6%. The firm plans to leverage the Stellar blockchain to facilitate faster and more affordable international transfers as part of its PayFi strategy.
Despite stablecoins' promise of lower costs and faster settlements, Chriss noted ongoing hurdles including technical difficulty for non-technical users, interoperability gaps in the ecosystem, and consumer familiarity with existing payment infrastructure. PayPal’s focus on user-friendly incentives and regulatory cooperation aims to make stablecoins a compelling alternative in payments while pushing broader mainstream adoption.