David Wells, CEO of Enclave Markets, said that PayPal announced the launch of the stablecoin PYUSD, and it is unclear what direct impact it will have on USDC.
It is reported that David Wells worked for Paxos from 2017 to 2020 as the product leader of USDP and BUSD.
Wells said that PYUSD and USDC could compete for a similar customer base that prefers to use regulated stablecoins in the United States rather than offshore stablecoins.
But for PYUSD to fully compete with USDC, it needs to be listed on an encrypted exchange. Wells believes, “It is unclear when/if PYUSD will be listed on a large exchange, so it may focus on cross-platform payment use cases. In the long run, PYUSD may also compete with USDC in the market share of encrypted transactions. “
Anders Helseth, vice president of encryption research company K33, agreed, “I think an important factor in the short term is whether there are exchanges that adopt PayPal’s stable currency.”