PayPal to Launch Global Crypto Services Early Next Year with Future Support for CBDCs
While reporting third-quarterly results, CEO of PayPal, the payment processing behemoth, provided additional info regarding the plan to strenuously expand in the crypto industry in 2021.The company also revealed that it intends to back central bank digital currencies (CBDCs).
Pointing to the expedited transformation taking place in financial services industry, the CEO of PayPal, Dan Shulman, acknowledged the shift that is taking place from fiat to digital payments: “Clearly the world is rapidly moving from physical to digital.”
Shulman further highlighted the discussions with regulators, central banks and cryptocurrency industry leaders:
“There is no question that digital currencies are going to be rising in importance, having increasing functionality, and increasing prominence. CBDCs […] are a matter of when and how they’re done, and not if.”
The company also intends to “help shape the utility of [CBDCs],” by capitalizing on its huge network and established name. In case of CBDC, PayPal aims to facilitate interoperability with prevailing payment systems and encourage acceptance among vendors. Shulman also alleged that the prevailing financial system is not working” for numerous ordinary people.
“I do think that our platform and all the new digital infrastructure that we’re putting in place right now can help make that management and movement of money more efficient, less expensive, and faster.”
In October, PayPal notified its plan to venture into crypto domain by facilitating buying, selling and holding cryptos, turning the crypto market extremely bullish. The launch will also witness cryptocurrencies being backed by PayPal’s 28 million strong merchant network.
During the earnings call, PayPal’s executives stressed the robustness of demand for cryptocurrency services from its clients by stating “our base is very eager for us to offer these capabilities.”
Even though only 10% of PayPal’s clients in the US have access to crypto related services, Shulman is hopeful that the rest of the country will get lured into crypto domain before the end of this year.
Shulman said: “Our waiting list was two to three times what our expectations were. We’re seeing people who have already bought crypto open their wallet several times a day to check out what’s happening with their crypto investments.”
Considering the demand, Shulman stated that PayPal will increase weekly cryptocurrency purchase limit to $15,000 from $10,000. He further stated that PayPal’s cryptocurrency related facilities will be offered globally, in addition to the roll out of its mobile payments app Venmo in the first half of 2021.
The CEO said “Over the course of next year, you’ll see us move into a couple of different areas.”