You know that PayPal has already launched its own stablecoin.
The company Circle and Tether uses a dollar stablecoin, which is used not only by American companies. If the McHenry bill is passed in the US, will it strengthen the dollar as the world's reserve currency?
Currently, the dollar is the safest fiat currency to back stablecoin because it is more stable compared to other fiat currencies. Paypal has an estimated 429 million users worldwide and PayPal USD (PYUSD) will be available for them to adopt. But this doesn't mean that it will make the dollar stronger because other factors contribute to the value of a currency. With this news, Alipay might come up with its stablecoin backed by the Chinese Yen.
The McHenry bill will be the first comprehensive law on crypto regulations, we are expecting to see the effect of its provisions. But there is not much difference between Central bank digital currencies (CBDCs) and stablecoins. The only difference is that CBDCs are issued by the government while stablecoins are handled by private firms. They are all fiat clothed in crypto.