PayPal CEO said the company has been exploring the possibilities of cryptoassets and the demand for cryptocurrency has significantly exceeded its expectations.
April 26, 2021 | AtoZ Markets – The demand for cryptocurrency has exceeded expectations many times over. This was stated in an interview with TIME magazine by PayPal CEO Dan Schulman. According to him, the current financial system is in dire need of modernization due to its inefficiency.
“Cash out can take three days. If you are making an international transfer, it can take seven days to receive the money. And it’s too expensive,” he said.
According to Schulman, the company has been monitoring the cryptocurrency market for the past six years. However, the decision to join was made only last year due to the arrival of traditional players in the industry.
“We wanted to work hand in hand with regulators before we put something on the market,” Schulman said.
However, Shulman did not give any specific figures on the turnover of cryptocurrencies through PayPal.
Schulman’s statements about the unprecedented demand for cryptocurrency are similar to the truth, but they only apply at the time of the service launch. Over time, interest in the cryptocurrency market through PayPal has weakened.
As you can see in the graph above, PayPal peaked in early January 2021. It was then that US users were able to make payments in cryptocurrency. Since then, however, trading volumes on the itBit crypto exchange (which is PayPal’s liquidity provider) have dropped significantly.
What exactly is the reason for the decline in interest remains unknown. PayPal itself, however, aims to earn up to $2 billion in cryptocurrencies by 2023. At least, analysts of the Japanese commercial bank Mizuho came to this conclusion.
PayPal and added support for cryptocurrencies, but the company is not going to completely switch to the virtual asset market. In February, PayPal Chief Financial Officer John Rainey said PayPal was unlikely to invest the company’s money in assets like Bitcoin.
As a reminder, earlier in April it became known that the largest public bitcoin hodler, MicroStrategy, will begin to pay salaries to the board of directors in bitcoin. The amount of payments will be calculated in relation to the US dollar.
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