Posted 3 weeks ago | by Catoshi Nakamoto
In an interview with TIME magazine, PayPal’s CEO Dan Schulman detailed the payment processor’s expansion into crypto as a service and what the company has in store for the future. Schulman predicted that a greater transformation of e-commerce will emerge with purchases driven by social media platforms. Bitcoin could spearhead the change and take it to the entire financial system.
Schulman believes 2020 was a crucial year that accelerated “the trend of digital payments by as little as three years and maybe as much as five years”. Due to the pandemic digital cash has been rapidly expanding its use over traditional paper currency.
According to Schulman, PayPal made 15.4 billion payments with an estimated value of $936 billion last year as per data shared. This trend could be increased in 2021 to meet the demand of PayPal’s 300 million estimated users.
Over the next decade, PayPal’s CEO believes that fiat as a form of payment will see a decline in its usage. Its detriment will also affect credit cards and the universally utilize forms of payment, like credit cards, checks, and wire transfers. According to Schulman, digital payments can “add more value.” He further speculated that’s a benefit for Bitcoin and digital currencies, stating:
And so when all of those things start to happen, then central banks need to rethink monetary policy as well, because you can’t just issue more paper money into the system because people aren’t using paper money. And so this is the advent of digital currencies.
PayPal’s CEO also stated that the current financial system is “inefficient” and called for ways to “modernize it” for it to be more inclusive and cost-efficient.
Schulman additionally expressed, that 10 years down the line, PayPal and Bitcoin could be integrated with one of “six to 10 super apps”. These will work as a bridge, connecting people with other applications. Thus, users could have more control over their data and the way they interact with products or services. While speaking about the demand for Bitcoin and other cryptocurrencies, Schulman said:
“Demand on the crypto side has been multiple-fold to what we initially expected. There’s a lot of excitement.”
Paypal recently purchase Curv, which helps companies transfer and store digital currencies.
PayPal’s crypto offering has been limited, with the payment giant failing to give users control over their own private keys. It will be interesting to see what use case the company will leverage with Curv, and whether or not users will be able to withdrawal cryptocurrencies to their own private wallets similar to what Robinhood just announced.
PayPal partnered with New York-regulated Paxos to offer direct purchases of cryptocurrency for its millions of U.S. users last year. The payment company also tried to acquire Bitgo a crypto custody and trading firm last year but the deal fell apart for unknown reasons.
Bitcoin is currently trading at [FIAT: $54,839.12] UP +1.7% according to Coingecko at the time of this report.