PayPal CEO Dan Schulman said the company has been exploring the possibilities of cryptoassets and blockchain for a long time, and the demand for cryptocurrency has significantly exceeded its expectations.
Schulman said PayPal has been studying digital currency forms and distributed ledger technology (DLT) for about six years. However, for a long time, the company’s management believed that cryptocurrencies are more like assets than currencies. He said:
“Cryptocurrencies were too volatile to be a viable currency. And there were still too many people who did not understand what it was. We waited for cryptocurrencies to become more popular, and worked with regulators to launch a service that works in accordance with the law. ”
In October 2020, PayPal added cryptocurrency support for US users. Shulman said that after implementing this initiative, he began to view cryptocurrencies as part of a comprehensive strategy to reduce the cost of payments. He also noted that the demand for cryptocurrencies was amazing:
“The demand for cryptocurrency has exceeded our initial expectations many times over. We are very excited. ”
Shulman predicts that significant changes will occur in the financial system in the next ten years, as these structures have lost their effectiveness:
“If you are cashing a check, it can take three days to receive the money. If you are making an international transfer, it can take seven days to receive the money. ”
The PayPal executive expects up to ten “super applications” to dominate payments, with cash flow “significantly reduced.” He also predicts that credit cards will eventually disappear and be replaced by mobile phones.
As a reminder, last week, the mobile payment service Venmo, owned by PayPal, added a direct buy and sell feature for four cryptocurrencies: BTC, ETH, LTC and BCH.
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