Crypto Quotes From PayPal CEO: Cryptocurrencies Will Redefine the Financial World

PayPal has been an advocate for the crypto industry in recent years. The payments giant, which itself has more than 350 million active users, already allows users in the US and UK to trade or hold Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH) and Litecoin (LTC), while supporting Users pay with these cryptocurrencies.

Earlier this year, PayPal revealed its next project to the world, a dollar-pegged stablecoin (PayPal Coin), and although there is no further information on the project, PayPal’s senior vice president of encryption and digital currency Jose Fernandez da Ponte revealed in an interview that this is an exploratory attempt, and if approved, the token will meet all necessary regulatory standards.

Of course, PayPal’s support for cryptocurrencies is inseparable from executive advocacy.

Axis Tel Aviv is an investment and innovation conference based in Israel, held annually, bringing together international investors and leading Israeli startups. This year’s conference will take place on March 29 at the Perez Center for Peace and Innovation. Before the meeting, PayPal CEO Dan Schulman gave an interview to Israeli media C-Tech, reiterating his positive stance on the crypto industry. In his view, the “crossover” between digital assets, CBDC, stablecoins and digital wallets will “redefine many financial worlds in the future.”


Image: Dan Schulman, via C-Tech

One of the most discussed topics in the crypto community is the prices of various cryptocurrencies and their predictions. However, Schulman doesn’t think it matters. What matters to him are the merits of the crypto industry and its ability to positively impact the financial world:

“I’m very excited about what crypto and blockchain technology can do to the financial system of the future. I think everyone’s initial thoughts on cryptocurrency, buying and selling it, and what the price of bitcoin will be tomorrow, is what comes to me Said is the least interesting part – seeing cryptocurrencies as an asset class. To me, what’s really exciting about digital currencies is what kind of utility they can provide in payments.”

Immediately afterwards, Schulman emphasized his position that the combination of digital assets, central bank digital currencies (CBDCs), stablecoins and digital wallets could reshape the financial industry:

“Clearly, around the world, central banks are looking at issuing digital currencies. Not only is the intersection between CBDCs, stablecoins, digital wallets and enhanced payment utility through cryptocurrencies fascinating, but I think this will redefine many of the future financial world.”

It is worth mentioning that Schulman’s “concern” for the crypto industry dates back to 2015, although PayPal has been under the attention of cryptocurrencies for 4 years, but at that time he believed that cryptocurrencies were just an asset. It was not until 2019, 4 years later, that Schulman’s “persistence” slowly surfaced. Not only did he personally hold Bitcoin and form a blockchain/encryption research team for PayPal, but he predicted encryption as the CEO of a payment company. Currencies have the potential for payment alternatives.

“In the next 5 to 10 years, you will see more changes in the financial system than in the last 10 to 20 years. How do we think about modernizing the existing financial infrastructure? It needs to be modernized because it is inefficient right now. If you cashed your check, it may take up to three days to receive your money. If you send an international money transfer, it may take up to 7 days to receive your money.

But the current price of cryptocurrencies is still volatile, so merchants are not in high demand with very low profits. All they have to do is convert it to fiat instantly, but the conversion process requires fees, so any cost advantage is usually eaten up by fees. It won’t be a widely accepted currency by merchants on the web until it becomes less volatile. That doesn’t mean I don’t think cryptocurrency is an interesting thing, and people are trading it a lot. It is now more like a commodity than cash. But you can consider use cases in different countries and places where it can be more stable than the alternatives. “

Also in 2019, when Facebook’s ambitious crypto project Libra (later renamed Diem) launched in June, a total of 28 companies became members of the Libra Association. Companies including PayPal, Visa, MasterCard and Coinbase will help build and operate services around the project. Although one of the first members to join Libra, Paypal was also the first to exit.

In an interview after the event, Schulman gave the reason for the exit and further praised the “financial inclusion” of the blockchain infrastructure.

“When David Marcus [Facebook’s head of Libra] first came to talk to us about Libra, he built it in a way that appealed to us for financial inclusion. We’ve been exploring next-generation technologies — like blockchain foundations facilities to increase efficiency. When we learn more about [Libra] and see that we have a lot more to do with our own future plans, we can move forward with financial inclusion much faster than if we could dedicate all these resources to Libra sex.”

Since then, PayPal under Schulman has moved into the crypto industry.

In October 2020, driven by the global ravages of the COVID-19 pandemic and strong investor interest in digital currencies, PayPal announced a new service that has set the crypto industry on fire, enabling users to transact and trade directly from their PayPal accounts. Hold cryptocurrencies, including four popular cryptocurrencies Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH) and Litecoin (LTC). And it plans to increase the efficiency of its platform’s 26 million merchants by including cryptocurrencies as one of the payment channels.

As part of the new service, PayPal will provide cryptocurrency holders with educational content to help them understand the crypto ecosystem, the risks and opportunities associated with investing in cryptocurrencies, and information about blockchain technology. Prior to this, PayPal had obtained an encryption license Bitlicense from the New York State Department of Financial Services (NYDFS).

Regarding the service, Schulman said: “The shift to digital currency is inevitable, and it brings tangible benefits in terms of financial inclusion and access, the efficiency, speed and resilience of payment systems, and the ability of governments to disburse funds to citizens quickly. Strengths, our global reach, digital payments expertise, bilateral network, and stringent security and compliance controls provide us with the opportunity and responsibility to help advance the understanding, exchange and interoperability of these new transaction tools. We are eager to Partnering with central banks and regulators around the world to provide our support and meaningfully contribute to shaping the future role of digital currencies in global finance and commerce.”

While some other mainstream fintech companies at the time, such as payment providers Square, Revolut, had already integrated crypto transactions, PayPal, with its broader reach, attracted greater attention.

Mike Novogratz, CEO of Galaxy Digital, a New York-based asset manager focused on the digital asset space, likened the move to “the gunshots the world hears on Wall Street.”

According to PayPal’s Q4 2020 report, revenue grew significantly in Q4 following the integration of crypto transactions; meanwhile, PayPal recorded the number of active accounts on its platform, adding a whopping 1,600 in Q4 alone. 10,000 active accounts; total payments in the fourth quarter rose 39% to $277 billion, well ahead of the company’s $267 billion forecast; net profit also rose further, to $1.1 billion from $84 million a year ago Dollar.

Schulman attributes this huge increase to cryptocurrencies: “Through our crypto integration efforts, we have achieved very good results strategically. At least half of our crypto trading users open their PayPal accounts on a daily basis.”

Last year, PayPal also added the service to its payment app Venmo, introducing BTC, ETH, BCH and LTC trading and holding features to its more than 70 million users. Venmo users will be able to buy as low as $1. cryptocurrency and can trade their assets using their Venmo balance or linked bank card. More importantly, allowing users to pay their millions of online merchants around the world with their cryptocurrency holdings.

In this regard, Schulman commented: “For the first time, you can use cryptocurrency as seamlessly as using a credit card or a debit card in a PayPal wallet.”

A few months later, the service was extended to PayPal’s UK users.

To stay compliant, the company is currently working on ways to integrate tax reporting of transfers into its crypto trading services on its platform.

With the passage of the U.S. Infrastructure Investment and Jobs Act, cryptocurrency will be defined as a security and subject to increased information reporting requirements for “brokers,” which will now include “any person responsible for regular Provide any service to enable the transfer of digital assets on behalf of others.” In other words, once the new law takes effect in December 2023, all digital asset brokers, exchanges or sellers will be required to provide information reporting forms for digital asset transactions, including Cryptocurrencies and NFTs.

The latest development is that TaxBit, the leading tax firm in the crypto industry, has teamed up with PayPal and crypto exchanges including Coinbase, FTX and others to create the TaxBit Network, which will conduct cryptocurrency and NFT investors on exchanges belonging to the TaxBit network in 2021. Trading offers free, unlimited tax filing.

PayPal’s implementation of cryptocurrency “financial inclusion” is also reflected in the creation of a stablecoin pegged to the U.S. dollar. Jose Fernandez da Ponte, senior vice president of cryptocurrencies and digital currencies at PayPal, confirmed the rumored “PayPal Coin” in January this year, saying: “The company does not yet have a stablecoin dedicated to payments, and for PayPal’s use, a stablecoin needs to be To support large-scale payments and have security. So there has to be a clear regulation, the regulatory framework and the licenses needed in this space.”

However, the encrypted ecosystem is not only about transactions and payments. The popular DeFi and smart contracts in the past two years have also been seen by CEO Schulman:

“How can we use smart contracts more efficiently? How can we digitize assets and open them up to users who don’t have access? There are also some interesting DeFi applications, so we’re working on it.”

Posted by:CoinYuppie,Reprinted with attribution to:
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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