PayPal CEO Reveals Big Plans for Crypto to Become a ‘Market Leader in the Digital Currency Space’
In its Q3 2020 earnings call on Monday, PayPal Holdings, Inc. (NASDAQ: PYPL) discussed increasing the utility of cryptocurrencies and to embrace new forms of central bank digital currencies (CBDC), which are just “a matter of when and how they’re done, not if.”
Dan Shulman, the President and chief executive officer of PayPal, shared that over the next year, both PayPal and Venmo will be undergoing a “fundamental transformation” that expands to crypto as well.
“We are entering a new era of financial services where our wallets and all the services around them are moving from physical to digital.”
This is why last month, the online payments company announced that they would allow its account holders to buy, sell, and hold cryptos; a decision made after a “lot of research.”
“Very Eager” Users
The service is opened in the US, for now, which will be then expanded to international markets and then Venmo platform in the first half of next year, that too in “in close partnership with regulators.”
The early reactions to this announcement has been “well beyond our expectations,” said Shulman.
“Our base is very eager for us to offer these capabilities,” which is rolled out to only 10% of the user base with a waiting list two to three times the expectations. It will be rolled out to 100% of the user base in the US in the next two to three weeks, with the limit increased from $10,000 per day to $15,000 per day based on this demand.
“We’re beginning to already see some halo effects that go on with that,” said Shulman.
“My conversations with central banks, with the regulators, with a number of folks in the crypto field, there is no question that digital currencies are going to be rising in importance, having increasing functionality and increasing prominence.”
So Much More
Shulman is “really excited” about “dramatically increase the utility of cryptocurrencies” by enabling a crypto holder to instantaneously transfer that crypto in PayPal account into fiat currency with no incremental fees charges.
Through its platform with digital wallets and its scale, Shulman believes PayPal can help shape the utility of digital currencies that ranges from interoperability between wallets, between currencies, and “importantly into our network of merchants for commerce” — a way of using crypto as a lower-cost funding mechanism.
At the beginning of the next year, consumers will also be allowed to shop across all 28 million merchants, a solution that will not involve additional integrations, volatility risk, or incremental transaction fees for consumers or merchants that will “fundamentally bolster the utility of cryptocurrencies.”
“This is just the beginning of the opportunities we see as we work hand in hand with regulators to accept new forms of digital currencies,” to be “a market leader in the digital currency space,” Shulman said.
As the company looks ahead to Q4 and 2021, they also see “multiple tailwinds from the permanent shift towards a digital economy.”