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?
Dollar will remain dollar and this wouldn't change anything, the adoption especially the foreign reserves will maintain their policy, what's the use of stablecoins when the fiat will do the same job, just one is digital and the other is physical. I think the central bank digital currency will do the opposite adoption for people who value dollar than stablecoins that always have dishonesty in financial audit.
Perhaps this will strengthen the PayPal company transaction, nothing new under this new polarized stablecoin. Only PayPal will earn from the loans they will lend out, interest rate from borrowers and fee from transaction because people will be willing to use PYUSD since people can get the chance to redeem it for physical USD, more transactions, more fees and more revenue for the company, and when people don't feel safe with USDT and USDC, they will rush to PYUSD especially during depegging of the value we normally have in FUD times.