PayPal CEO Explains Company’s Mission to Improve Bitcoin’s Payment Functionality
PayPal’s entry into the crypto space has been one of the most anticipated events of 2020 in the cryptocurrency sector. Besides increasing customers’ access to Bitcoin, the payment processor appears bent on improving its functionality for transactions.
Easy Payments Anytime
Earlier today, PayPal chief executive Dan Schulman spoke to CNBC’s Squawk Box. He explained that the company’s entry into the Bitcoin market was fueled by a desire to capitalize on digital payments growth. Schulman said that PayPal’s objective is to improve peoples’ ability to utilize crypto as a funding source, hence their mode of operation.
“When you start to move crypto as a potential funding instrument, I think that bolsters its utility and stabilizes it as well–because it can be used every day in your purchases.”
The CEO added that increased adoption could also improve Bitcoin’s stability. Detractors have often bashed Bitcoin for its volatility. Addressing this problem can be a game-changer for Bitcoin – both as an investment vehicle and a currency.
PayPal’s customers in the U.S can now buy, sell, and hold Bitcoin through its new crypto feature. The service will also provide compatibility with existing merchant platforms, allowing businesses to accept digital payments. Schulman told CNBC that business integration would be open to about 28 million merchants.
Co-Existing with CBDCs
Schulman also spoke on Central Bank Digital Currencies (CBDC), explaining that many of these will grow as fiat loses prominence.
CBDCs have been a hot-button issue this year. Many countries have announced their intention to digitize their currencies, with most of them hoping to bolster their digital payment infrastructures. However, there have also been questions about what this could mean for top digital assets like Bitcoin.
For Schulman, CBDCs’ entry into mainstream finance could benefit Bitcoin. In part, he believes the dissipation of fiat from daily transactions could force central banks to find replacements. These replacements will ideally be the digital forms of their fiat currencies.
Many believe that increased fiat digitization could lead governments to take harsher stances against legacy cryptos – a reality that could hurt PayPal’s business.
However, Schulman explained that CBDCs’ proliferation wouldn’t negatively affect traditional cryptocurrencies like Bitcoin. As he explained, cryptocurrencies’ underlying structures like smart contracts could improve CBDCs and their operational efficiency when they get launched.