PayPal CEO Dan Schulman said the company has been exploring the possibilities of crypto-assets and blockchain for a long time. The demand for cryptocurrency has significantly exceeded its expectations. Schulman said PayPal has been studying digital currency 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.
Schulman believed that cryptocurrencies were too volatile to be a viable currency, and there were still too many people who did not understand what it was. The company has been waiting for cryptocurrencies to become more popular and has worked with regulators to launch a service that is compliant 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 cryptocurrency exceeded their initial expectations many times over.
Shulman predicts significant changes in the financial system will take place in the next ten years, as these structures have lost their effectiveness.
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.
We also want to remind you that the Tesla automaker added the ability to pay for its products with Bitcoins at the end of March. While the service is only available to US customers, it will appear in other countries later this year. The company will not convert Bitcoins received as payment into fiat currency.