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PayPal CEO believes cryptocurrencies are on the verge of mainstream adoption as more and more businesses and consumers flock to “digital payments and digital forms of currency.”
In an interview with CNBC, PayPal CEO Dan Schulman said the COVID-19 pandemic has accelerated the shift to digital forms of payment. PayPal wants to be at the forefront of the ongoing digital transformation.
Schulman said “cash use has fallen precipitously” in the midst of the pandemic, adding that “40 to 70 percent of consumers no longer want to handle cash.”
PayPal isn’t just making it easier for people to buy and hold cryptocurrencies; the service will integrate with existing merchant payment platforms, allowing companies to accept digital forms of payment.
The PayPal executive said:
“One of the things we have allowed is not only to make it easy to buy, sell and hold cryptocurrencies, but, very importantly, early next year, we will allow cryptocurrencies to be a source of funding for any transaction that takes place on all 28. millions of our merchants. And this will significantly enhance the usefulness of cryptocurrencies. “
PayPal consulted with global regulators and central banks before launching its cryptographic service. Schulman said it’s only a matter of time before these monetary authorities release their own central bank digital currencies, or CBDCs:
“It is a question of not if but when and how we will start to see more and more central banks issuing forms of digital currencies. I think you will have more and more use with cryptocurrency. “
PayPal launched its cryptocurrency services in the US earlier this month, just weeks after first announcing the new initiative. The services will be rolled out globally early next year.
The global payments merchant, which has over 300 million active users, has been buying Bitcoin (BTC) and other cryptocurrencies at a rapid pace. As Cointelegraph recently reported, PayPal bought nearly 70% of all new Bitcoins in circulation. The supply shortage has been cited as one of the main reasons for Bitcoin’s rapid appreciation over the past month.
Some of Bitcoin’s staunchest detractors claim that the digital currency lacks intrinsic value. To this, Schulman said:
“All forms of money are built on trust and establish values that come from that trust.”
