PayPal Moves Into Crypto Token Economics By Using A Blockchain Reward System For Employees
PayPal has decided to embrace blockchain technology implementing it in an internal incentive platform for employees. The information was recently released by Cheddar. Apparently, the platform was built over a period of six months. In order to test it, 25 employees were receiving rewards through this system.
According to Michael Todasco, director of innovation at PayPal, said that employees were able to access their tokens using an internal website and earn more by participating in programs and contributing with ideas. The tokens provided to employees have no value outside PayPal and can be tradeable among employees.
PayPal has been usually reluctant to work with virtual currencies. Not only because they can be a competitor, but also because they are very volatile to accept. If there is a merchant that receives $100 in Bitcoin and the price drops, the earnings also drop. However, this could be solved by immediately selling the BTC and receive fiat currency.
Back in August 2016, PayPal filed a patent related to an expedited cryptocurrency transaction system. However, the company did not want to provide details about this patent. Indeed, it might never see any real use.
The tokens can be redeemable for different experiences related to the company. For example, it might be possible to participate in a poker tournament with some vice presidents, share a coffee with the CFO John Rainey, or do morning martial arts with the CEO Dan Schulman.
This is similar to what BBVA is doing in Spain and in Argentina. The company is experimenting with the BBVA Campus Wallet to which employees have access. They can use the tokens and redeem them for an hour of training. At the same time, it is possible for them to earn more tokens if they train another employee. Although BBVA and other banks such as Santander seem to be very open to blockchain technology and virtual currencies, they are not allowed to hold cryptocurrencies within the current legislation.
Blockchain technology has been embraced by several companies all over the world, and PayPal is one of them. However, distributed ledger technology (DLT) has many different use cases in a wide range of sectors and industries all over the world.