Mate, we have had USDT for years at this point, and that is what everyone is using. Of course, the company that mints USDT (Tether) cannot be trusted to keep it fully pegged, but do you honestly think that PayPal USD will get huge adoption?

It has a huge disadvantage that it's a completely different token (I don't think even ERC-20, otherwise that would mean Paypal depends on decentralized Ethereum) and hence not accepted as payment by pretty much the entire internet. It would also compete with whatever CDBC the governments are trying to come up with.

Even with none of the advantages, it still carries the negative stigma of being associated with "crypto" so the only realistic outcome I see for this product is a fast and swift demise.