Cryptocurrency Is The Real Deal

Over the past few months, there has been a lot of cryptocurrency news as the prices of some of the major digital currencies have hit all-time highs.

More and more companies have also started to embrace this new digital currency, including Tesla, Square and PayPal.

Tesla, for example, now accepts bitcoin as a payment method for its electric cars. While this payment method is only available in the United States for now, founder and CEO Elon Musk said it will be extended to customers outside of the United States later this year.

In a recent interview with Time Magazine, PayPal CEO Dan Schulman shared some thoughts on how the company is looking at cryptocurrency over the next few years. Here are some highlights to note:

Phasing out of cash transactions

Due to COVID-19, PayPal said the United States saw a rapid digitization process three to five years before its projection.

Penetration of the American paypal digital market
Image Credit: PayPal Investor Day 2021 Presentation

For this reason, Schulman predicts a dramatic decline in the use of cash over the next five to ten years. This means that consumers will no longer use cash for payment as much as they do today.

With everything happening online, cash as a form of payment is no longer effective and efficient, and we are seeing the rapid rise of digital currencies.

Nobody wanted to touch cash, and that led to a huge increase in the use of digital forms not just for paying, but for looking at menus and looking at offers and that sort of thing in stores.

– Dan Schulman, CEO of PayPal

Rapid modernization of existing financial infrastructure

In addition to the rise of digital currencies, in the next five to ten years Schulman expects huge changes in today’s inefficient financial ecosystem.

He explained that the fact that it can take three days for you to get your check cashed, or seven days for an international remittance to reach its recipient, speaks volumes about the inefficiencies of the current financial system.

So when you think it’s expensive, exclusive, and efficient, we really have to start thinking, “How do you modernize this system? Is there a way to do things more efficiently, cost effectively, more inclusively, and add more utility to the system?

– Dan Schulman, CEO of PayPal

One way to solve this problem is to use a digital currency issued by the central bank, backed by the government. Thanks to a digital currency, payments can be instantaneous with no fees or frictions.

Multiple cryptocurrency request

paypal cryptocurrency
Image Credit: PayPal Investor Day 2021 Presentation

In November of last year, PayPal announced that it would allow all users to buy, sell, and hold cryptocurrency from their PayPal account.

Since then, Schulman has said the demand for the service has been “multiple” compared to what the team initially expected.

“There is a lot of excitement,” he said simply.

Then earlier in March, PayPal rolled out another new feature that allows US merchants to authorize a “Checkout with Crypto” feature, allowing their customers to complete their transaction online through cryptocurrencies.

According to the company, customers who hold bitcoin, ether, bitcoin cash and litecoin in PayPal digital wallets will now be able to convert their holdings into fiat currencies at checkout to make purchases.

He added that this service will be available at all of its 29 million merchants in the coming months.

The willingness of merchants to embrace the technology necessary to accept bitcoin as payment for their goods is clearly driven to a large extent by commercial motivations, while the customer preferences that merchants respond to can be significantly driven by their support for bitcoin. for idealistic reasons.

As digital currencies become more widely accepted, we may soon see an inflection point in terms of the adoption of traditional digital currencies.

Cryptocurrency and blockchain technology is a key content pillar for Vulcan Post, and we’ll continue to cover development in this space. You can follow our coverage here.

Featured Image Credit: Geoff Pugh via Telegraph

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Jothi Venkat

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