As the price of bitcoin continues to hit record highs, large companies offering current cryptocurrencies have instead begun discussing ambitious plans for the future.
Recently, PayPal CEO Dan Shulman mentioned the future development of PayPal’s cryptocurrency offering during Forbes’ Blockchain 50 2021: Cryptocurrency Goes Corporate Seminar, an online event held on April 13.
During a conversation with Michael Del Castillo, deputy director of Forbes, Shulman noted that the financial system will undergo several changes over the next five years compared to the progress of the last 30 years. Shulman further indicated that digital currencies such as Bitcoin (BTC) will lead, indicating that there will be much less cash and credit card transactions over the next five to ten years. Schulman said:
“We are approaching the time with digital currencies, and these digital currencies make great promises, be it digital currencies or the central bank’s digital currencies. I believe digital currencies can increase the value of payments and make the financial system more inclusive and cheaper. … ”
Digital currencies will create financial inclusion
According to Shulman, one of the biggest problems facing society today is that millions of people everywhere are excluded from the current economic system. This is especially evident in the United States as Americans with bank accounts begin to receive the latest round of financial stimulus checks through direct deposits. Unfortunately, millions of non-bankers and non-bankers have to wait longer to receive paper checks in the mail.
Schulman noted that the financial system today is relatively inefficient, and notes that it takes a long time to get money, which is more challenging for people with low incomes. He said: “It is not comprehensive at all.”
To address these persistent issues, Shulman explained that the PayPal cryptocurrency offering, launched in the US in November 2021, will eventually allow users to do more than just buy, sell and buy Bitcoin, Ether (ETH) and Litecoin (LTC ). … …) And Bitcoin Cash (BCH). While PayPal announced in late March that the platform will soon allow its sellers to accept cryptocurrency as an exchange, Shulman suggested that this is just the beginning of many possibilities:
PayPal really wants to use cryptocurrency as a source of financing for daily transactions. The last phase, however, is a more noble vision of this economy as a whole, and everything will happen differently than today. ”
Aside from cryptocurrencies, Schulman shared that PayPal will ultimately benefit from smart contracts and other underlying technologies to ensure that payment is more than just a transaction. “This is the promise of all digital currencies – they can add value through a simple transaction.”
Digital currency innovation may take longer than expected
While PayPal’s cryptocurrency plans are remarkable, it’s important to note that innovation may take longer than expected. For example, when Del Castillo asked Schulman how long he expected PayPal’s cryptocurrency service to reach $ 200 million, Schulman boldly replied that it would only take a few months, perhaps less.
While this is encouraging for the adoption of cryptocurrency, Del Castillo noted that Coinbase Commerce, the platform that supports cryptocurrency payments to online stores, took 13 months to raise $ 200 million in volume.
However, Cointelegraph previously reported that the success of Coinbase Commerce is due in part to the 8,000 resellers currently using Coinbase for payment services. Shulman mentioned in a side chat that PayPal has over 375 million digital wallet consumers and around 30 million sellers on the platform. PayPal, on the other hand, has the potential to break new boundaries when it comes to digital payments for trading.
No plans to add bitcoins to your PayPal balance
While Schulman appears to be very optimistic about the adoption of cryptocurrency, the CEO said there are still no plans to add Bitcoin to PayPal’s balance in 2021. “I think the likelihood of this is small,” he said.
When asked why, Shulman explained that PayPal’s balance sheet consists of safer assets with less volatility, as funds must be used in a way that they can return money to shareholders. “We really need to check what’s on the balance sheet to ensure that capital is allocated consistently,” Shulman said.
While that may be the case, Michael Sailor, chairman and CEO of MicroStrategy, has a different view of Bitcoin’s volatility.