Nov 3, 2020
PayPal CEO considers the cryptocurrency system to be cheaper and more efficient than banking systems
PayPal, the company which has caused a boom in the Bitcoin market with its recent announcement of the adoption of cryptocurrencies, has provided additional information through its CEO.
In an interview, Dan Schulman, President & CEO of PayPal, at first confirmed the company’s record revenues, which were probably caused by the recent announcement of cryptocurrency. Subsequently, he focused on the time frame of the launch, where he stated that PayPal will make crypto payments available to 28 million merchants in the first half of next year. As for the US, they will be able to start using this service already in the coming weeks.
The CEO also assures that there will be no additional charges for consumers or traders.
Dan also mentioned a mobile payment service owned by PayPal, Venmo, which will also allow customers to shop using cryptocurrencies.
According to Dan, the actual acceptance of cryptocurrencies at PayPal was also based on a waiting list for access to crypto, which was up to three times higher than the company expected.
As for the central banks and their experiments with the CBDC, Schulman pointed out that he noted this effort of the banks to create digital and useful wallets.
Digital wallets are a natural complement to all forms of digital currency,
He added that Paypal has already closed talks with central banks and regulators to review the new uses of these wallets.
Schulman is clear about which financial system is efficient and said that PayPal considers the cryptocurrency system, which is tamper-resistant thanks to Blockchain technology, to be cheaper and more efficient than ACH, a common network supported by the existing banking system.
However, in addition to enthusiasm, the CEO of PayPal has small concerns about the US tax system, which defines each crypto transaction as a taxable event, so if you buy coffee from a crypto account, you must declare a capital gain. Schulman and PayPal thus came up with a proposal to create a so-called exemption that would exempt such small transactions from IRS scrutiny.
