PayPal, the largest and presumably the most successful online financial services provider, recently announced that it is skeptical about Bitcoin being used as the primary mode of payment in the future. Nonetheless, the company, which is estimated to be worth more than $128 billion, is pursuing a number of cryptocurrency and blockchain related projects.
PayPal Keen on Capitalizing on Cryptocurrency and Blockchain Revolution
In a recent interview, PayPal Chief Financial Officer, John Rainey, said that blockchain tech and cryptocurrencies might disrupt the financial industry and the firm does not want to be left out in the cold when that happens. John revealed that already the company has put together teams that are working on cryptocurrency and blockchain technology. He also mentioned that the company wants to be part of whatever form the crypto market takes in the future.
However, John Rainey stated that the position of the company concerning Bitcoin is that it is too early to speculate that it will be the primary mode of payment in the future. The CFO is not the only executive in the top management ranks who has concerns about the future of Bitcoin. Early this year, Dan Schulman, the current CEO, stated that bitcoin seems shaky as not many retailers are accepting payments for goods in form of cryptocurrencies.
Dan Schulman also stated that the underlying technology that powers bitcoin is interesting and has a lot of potential. He also noted that the primary reason why most retailers are not comfortable accepting Bitcoin is because of its volatility.
Bitcoin Transactions Slower But Cheaper than PayPal
Even though Bitcoin transactions take a little longer to complete, the transaction fees are lower compared to what PayPal charges its customers, especially for cross border payments. One of the top management executives who is of a different opinion is Wences Casares.
In a recent interview, Wences stated that the possibility of Bitcoin succeed is above 50%. He also said that if the cryptocurrency was to succeed, its value could shoot to more than $1 million in the 7-10 years. Notably, Wences is also the current CEO of Xapo, a bitcoin wallet firm.
PayPal Using Blockchain Technology
As mentioned earlier, PayPal has teams working on a number of blockchain projects. Last month, the company invested thousands of dollars in Cambridge Blockchain, a blockchain tech startup as noted by Forbes. The main goal of the Startup is to empower people by encouraging them to store their online digital identities in a decentralized storage platform that does not require any intermediaries.
Notably, in March last year, PayPal filed for a patent on a new blockchain technology that will increase the speed of cryptocurrency transactions. In one of the filing documents, PayPal noted that one of the factors that hinder adoption of cryptocurrencies is the slow transaction speed.