PayPal CEO says US stablecoin adoption faces hurdles

PayPal CEO Alex Chriss says it will take time before the use of stablecoins in the US becomes widespread.

Consumer appetite is weak despite increasing public discussion and legislative action; incentives are still being formulated.

While PayPal brought one of the first stablecoins from a big financial company to market in 2023, it has proved difficult for users to use the coins for everyday financial activities, Chriss said. The Genius Act may also cause restrictions around cryptocurrency to ease up and become more accessible to people, he said.

PayPal uses stablecoins mainly for sending money abroad

Chriss believes stablecoins are very practical in dealing with the delays, high transaction fees, and a lack of transparency with traditional methods when sending money across borders. 

The company sees cross-border payments as a gateway for mainstream users in underserved regions, where people often rely on outdated financial systems, and wants everyone to experience the benefits of stablecoins firsthand.

However, Chriss says adoption rates in the US are low because consumers haven’t yet found a compelling reason to change their habits. They don’t see how stablecoins can improve their daily financial lives and are comfortable using credit cards, bank transfers, and mobile apps.

Chrics explained that PayPal builds tools and programs that make stablecoins easier and safer. The company is also launching its own stablecoin early and investing in infrastructure, education, and partnerships that make stablecoins more useful in the real world.

New US laws will convince more people to use stablecoins

The GENIUS Act recently passed the Senate and is now waiting for a vote in the House of Representatives. It could give businesses and consumers more confidence to participate in the digital economy.

Meanwhile, the US lawmakers are working on a second major piece of legislation focusing on the broader crypto market.

Senate Banking Committee lead, Senator Tim Scott, said he wants Congress to pass a digital asset market structure bill before the end of September. The bill will determine whether the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC) should oversee different types of digital assets, including stablecoins, tokens, and cryptocurrencies.

Senator Cynthia Lummis also said she would feel “extremely disappointed” if the GENIUS Act and the digital asset market structure bill failed to pass before 2026. 

More companies will confidently join the industry, and there will be opportunities for innovation once Congress passes the bill.

The new protections and guidelines for how stablecoins and other digital assets should work will make users feel more secure and allow companies to invest in new technology and offer digital money services to more people.

Many lawmakers and industry leaders strongly support the bill, but no one knows exactly when Congress will take the final step to pass it.

So far, the bill has progressed; it passed in the Senate and gained attention in public debates, but it still needs to be approved by the House of Representatives. Even after that, lawmakers might suggest more changes or debate parts of the bill before it becomes a final law.