CEO says PayPal’s crypto commerce may reach $200M volume in just months
As the price of bitcoin continues to reach new heights, major companies already offering cryptocurrencies are beginning to discuss big plans for the future.
Just recently, PayPal CEO Dan Schulman alluded to the future development of PayPal’s cryptocurrency offering at the Forbes 2021 Blockchain 50 Symposium: Crypto Goes Corporate is an online event that will take place on the 13th. April has taken place.
In a candid conversation with Michael del Castillo, deputy editor of Forbes, Schulman noted that the financial system will evolve more in the next five years than in the past 30. Schulman also pointed out that digital currencies such as bitcoin (BTC) will come first, and noted that there will be far fewer cash and credit card transactions in the next five to 10 years, Schulman said:
We are entering the era of digital currencies, and these digital currencies hold great promise, whether they are cryptocurrencies or central bank digital currencies. I believe digital currencies can increase the utility of payments and make the financial system more open and affordable.
Digital currencies will promote financial inclusion
According to Shulman, one of the biggest problems in today’s society is that millions of people around the world are excluded from the modern financial system. This is especially noticeable in the United States, where Americans with bank accounts are beginning to receive the latest round of stimulus checks via direct deposit. Unfortunately, millions of Americans without a bank have to wait a long time to receive a paper check in the mail.
Shulman noted that the current financial system is relatively inefficient and it takes too long to get money, which is even harder for low-income people. It doesn’t imply that at all, he said.
To address these current concerns, Schulman explained that PayPal’s cryptovalrency offering, which launched in the US in November 2021, will eventually allow users to do more than just buy, sell and hold bitcoin, ethers (ETH), litecoin (LTC) and bitcoin cash (BCH). Although PayPal revealed in late March that the platform will soon allow its merchants to accept cryptocurrencies as a medium of exchange, Schulman suggested that this is just the beginning of many possibilities:
PayPal really wants to start using cryptocurrencies as a funding source for daily transactions. However, the end game is a nobler vision of this inclusive economy, and things will look very different from today.
In addition to crypto-currency payments, Schulman said PayPal would eventually use smart contracts and other underlying technologies to make a payment more than just a transaction. This is the promise of all digital currencies: they can only add value from the underlying transaction.
Digital currency innovation may take longer than expected
While PayPal’s plans for cryptocurrency are noteworthy, it’s important to note that innovation may take longer than expected. For example, when Mr. del Castillo asked Mr. Shulman how long he thought PayPal’s cryptocurrency service would reach $200 million in volume, Mr. Shulman boldly replied that it would only take a few months, maybe less.
While this is encouraging for cryptocurrency adoption, del Castillo noted that it took Coinbase Commerce, a platform that supports cryptocurrency payments for online merchants, 13 months to reach $200 million in volume.
However, Cointelegraph previously reported that the success of Coinbase Commerce is partly due to the fact that 8,000 retailers now use Coinbase for payments. Schulman noted during the fire discussion that PayPal has more than 375 million digital wallet customers and about 30 million merchants on the platform. PayPal, on the other hand, may well set new boundaries for digital payments in the retail sector.
No plans to add bitcoins to PayPal balance
Although Schulman seems to be very optimistic about the adoption of cryptocurrencies, the CEO said there are still no plans to add bitcoin to PayPal’s balance sheet by 2021. I think the chances of that happening are slim, he said.
When asked why, Schulman explained that PayPal’s balance sheet consists of safe assets with low volatility because the company needs to deploy resources to return money to shareholders. We really need to be careful about what’s on the balance sheet to ensure consistent capital allocation, Shulman said.
Yet Michael Saylor, president and CEO of MicroStrategy, has a different take on bitcoin’s volatility. This is no surprise, however, as the business intelligence company recently announced that its board members would receive bonuses in bitcoin rather than fiat currency.
Saylor also shared his thoughts on the future of bitcoin at the Forbes 2021 Blockchain 50 Symposium: The cryptographic event is a business event. In a candid conversation with Steve Ehrlich, director of research on digital assets at Forbes, Saylor said that sentiment toward bitcoin in the corporate world has changed significantly. However, he noted that thousands of companies are still hesitant to put bitcoin on their balance sheets for two reasons: Volatility and intangible accounting.
According to Saylor, volatility is a misnomer. He notes that bitcoin has been the best performing asset of the decade, as its value has doubled every six months for 10 consecutive years, Saylor said:
The winning team in any field is always the most inconsistent. If you think volatility is bad, you should bet on the losers.
Saylor went on to explain that the only logical reason most companies don’t have bitcoin on their balance sheets yet has to do with intangible accounting practices, noting that this is more problematic than volatility. While this may be the case for many companies, Saylor noted that MicroStrategy’s balance sheet will be 99 percent invested in bitcoin. He said:
Our strategy is to develop, acquire and own bitcoins. Crypto and bitcoin are becoming more accepted and adopted. If you compare March 2020 to today, you will see that this is an exceptional and emerging asset class. I also think the direct listing of Coinbase will be a huge entry point into the crypto market.
paypal crypto limitspaypal ceo on bitcoinbtc bearishcnbc paypal bitcoincrypto briefingbtc bearish divergence,People also search for,Privacy settings,How Search works,Central Bank Digital Currency,CBDC,paypal crypto limits,paypal ceo on bitcoin,btc bearish,cnbc paypal bitcoin,crypto briefing,btc bearish divergence,paypal crypto business unit