A few months after the giant PayPal launched payments for bitcoin and other cryptocurrencies, users’ demand for digital currencies on the platform has already doubly exceeded the company’s expectations, according to Paypal CEO Dan Shulman.
Speaking to Time magazine, Schulman stated:
The demand for cryptocurrencies was twice what we initially expected.
There is a lot of excitement.
“Shulman” explained that cryptocurrencies are only part of the general trend to digitize daily payments, which has accelerated due to the outbreak of the Coronavirus.
He said that ten years from now there will be a “massive” decline in the use of cash and credit cards.
Instead, most financial transactions will be conducted via smartphones.
Paypal and digital currencies:
Shulman explained in his interview with “Time” magazine:
When all of these things start to happen, central banks need to rethink monetary policy as well because you can’t just issue more paper money into the system, because people are not using paper money.
As all of this promotes the spread of digital currencies.
He noted that today’s financial systems are quickly becoming outdated due to slow transaction speeds and high fees.
In light of this, companies need to consider modernizing their existing financial infrastructure to make remittances more efficient, cost less, and more comprehensively, and add more benefit to the system.
In the next five to ten years, we will witness more change in the financial system than we have seen in the past ten to twenty years.
The current financial infrastructure needs to be modernized, as it is ineffective today.
Central bank digital currencies (CBDCs) also have block technology.
Shulman also explained that the digital dollar could enable the government to open up Federal Reserve financing to other institutions besides banks.
That could include companies like Paypal, he added, where funding could be made directly from the Federal Reserve into a digital wallet.
This way, the government won’t have to send motivational checks in the mail, for example, but instead go directly to its digital wallet through digital currency, immediate access, and at no cost.
After its successful launch of cryptocurrency services in the USA, PayPal is already looking to further expand the scheme abroad, with plans to offer buying and selling bitcoin to UK customers.