The CEO of PayPal, Dan Schulman, has revealed that demand for bitcoin and cryptocurrencies has repeatedly exceeded his expectations.
In an interview with Time Magazine, Schulman talked about PayPal’s record year due to the lockdown, during which as many as 1,000 transactions per second were reached during the peak Christmas shopping season. In total, the company processed 15.4 billion payments in 2020, with a total value of $936 billion.
Schulman argues that within a decade or so there could be a huge decline in the use of cash, with all forms of payment essentially being concentrated in mobile solutions. Even payment cards could disappear, in favour of mobile apps.
In this regard, he added:
“And so when all of those things start to happen, then central banks need to rethink monetary policy as well, because you can’t just issue more paper money into the system because people aren’t using paper money. And so this is the advent of digital currencies”.
At this point he started talking about the need to modernize the current payments system, making it more efficient, more useful, more inclusive and less costly.
He mentioned central bank digital currencies, but only as technological innovation of the fiat currencies themselves, whose financial function will remain unchanged.
Instead, it will be cryptocurrencies that will introduce the biggest changes, not least because he pointed out that demand for cryptocurrencies on PayPal “has been multiple-fold to what we initially expected”, as “there’s a lot of excitement”.
He also added that the company has been examining new digital forms of currency based on DLT for about six years, but that they thought it was still too early for the mainstream due to their volatility.
Despite this, in November 2020 they decided to launch first the cryptocurrency buying and selling service and then the cryptocurrency payment service, achieving immediate success far beyond their own expectations.
Dan Schulman and the boots paid for with bitcoin
Furthermore, Schulman, like many CEOs of the west coast USA, always wears a sort of uniform, with blue jeans, a black jumper and cowboy boots. When it came time to replace his boots, he says he used one of the company’s new services to make the purchase in bitcoin. With a few clicks, in seconds, he bought the boots and paid for them with the BTC he had previously purchased on PayPal.
“Boom. It was pretty cool”.