PayPal shook the cryptocurrency industry with the announcement that it was soon going to launch the buying and selling of various digital currencies. The news was followed by a Bitcoin rally that pushed the price of the token beyond $13,000.
Now, senior executives from the payments giant have revealed more details regarding the company’s roadmap, looking to enter the crypto market next year, with plans to support central bank digital currencies (CBDCs) as well.
During the company’s Q3 2020 earnings call, PayPal CEO, Dan Shulman said “Clearly the world is rapidly moving from physical to digital,” stressing over the rapidly evolving payments market and financial services sector.
Shulman cited discussions with central banks, regulators, crypto industry leaders, adding that cryptocurrencies will be gaining more “importance” because of the “increasing functionality, and increasing prominence.”
“CBDCs […] are a matter of when and how they’re done, and not if.”
Through its scale and prominence, the company wants to “help shape the utility of [CBDCs],” including facilitating interoperability with existing payment systems and promoting acceptance among merchants.
Shulman also described the legacy financial system as “not working” for many normal users. He then continued:
“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.”
Demand among PayPal users
The executive also noted that there is already heavy demand among PayPal users, stating that “our base is very eager for us to offer these capabilities.”
As of now, only 10% of PayPal’s US-based users have access to its crypto services, and the services are expected to go live for the rest of the nation before December.
“Our waiting list was two to three times what our expectations were,” Shulman noted.
“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,” he added.
He further revealed that the digital currency services will also be made available to international customers, alongside launching on its mobile payments app Venmo, during the first half of 2021.
“Over the course of next year, you’ll see us move into a couple of different areas,” the CEO added.Industry leaders are speculating that the company might soon issue its own cryptocurrency as well.
As previously reported by The Daily Chain, Meltem Demirors, CSO at digital asset management firm CoinShares, believes that this could happen within the next six to twelve months.