PayPal CEO: “The release of state-owned cryptocurrencies is a matter of time»

PayPal CEO: “The release of state-owned cryptocurrencies is a matter of time»

PayPal CEO Dan Schulman believes that cryptocurrencies should be used to make any payments, and the release of state-owned cryptocurrencies is only a matter of time.

In an interview, Shulman said that crypto assets are on the verge of mass adoption, as more organizations are switching to digital payments due to the pandemic. According to him, 40-70% of customers no longer want to use cash, so the PayPal payment system intends to continue to contribute to digital transformation. So, on November 13, PayPal added support for cryptocurrencies for American citizens.

The head of the company said that this initiative will not only make it easier for people to buy, sell and store cryptocurrencies, but also allow firms to use digital forms of payment, given that the service will be integrated with trading platforms. At the beginning of next year, these opportunities will be available not only to US citizens, but also to residents of other countries. Shulman added that before launching the service, he consulted with regulators from different countries and central banks.

“People will be able to make any transactions using cryptocurrencies. This will significantly increase their value. Now we just have to wait for central banks to issue their own digital currencies. The question is not whether they will do it, but when and how they will be able to implement it. Soon, cryptocurrencies will become a part of our lives,” Shulman said.

In 2018, the head of PayPal stated that it is not profitable for retailers to use bitcoin because of its volatility, which can lead to a significant difference between profit and loss on each sale. However, over time, Shulman changed his attitude towards bitcoin and crypto assets in general. He now believes that their intrinsic value is based on people’s trust.

Note that some central banks have already introduced their own digital currencies. So, in October, the Central Bank of the Bahamas launched the state stablecoin Sand Dollar. In the same month, the Central Bank of Cambodia officially issued the state digital currency Bakong to improve the efficiency of the country’s payment system.