PayPal plans to expand its cryptomime services rapidly in 2021 and support central bank digital coins (CBDCs) when they are eventually released
PayPal announced its entry into the cryptomachine market last month, with the payment processor initially offering its services to U.S. customers. However, the company intends to expand internationally and rapidly in the first half of 2021.
PayPal CEO Dan Schulman and other Bitcoin Code senior executives made that point clear during the company’s third quarter 2020 results presentation. Schulman told investors that the world is moving fast from physical to digital, emphasizing the speed of change in the payments and financial services industry. The rapid change in the financial services and payment industry is why PayPal wants to offer its cryptomeda services to Venmo and international customers in the first half of 2021. Schulman said, „Over the next year, you will see some changes in a couple of areas in our company.
Currently, only 10% of customers in the US can access cryptomoeda services, with other customers in the country expected to enjoy the service in the next two to three weeks. Following the cryptomoeda announcement, PayPal saw sufficient interest to ensure the company increased its weekly cryptomoeda purchase limits from $10,000 to $15,000.
Schulman predicted massive opportunities for PayPal in economies that support digital identity, all-digital payments, and financial services.
PayPal will support CBDCs
Digital coins from the central bank have been the fashion in the financial space in recent months. Today, no digital currency has been officially launched for commercial purposes anywhere in the world. However, several countries like China, Uruguay and others are making great progress in this sector with the development of their CBDCs. Other countries such as Canada, Australia, the European Union (EU) and many others are continuing to research the possibilities of launching CBDCs.
PayPal’s CEO believes that the central bank’s digital currencies will soon enter the digital economy. At the moment, it is a question of when and not if. When CBDCs are launched for widespread adoption, PayPal will be ready to support them.
The payment processor wants to develop the world’s most expansive and attractive digital wallet, which will also support CBDCs. The CEO added that PayPal’s scale and prominence can help shape the utility of central bank digital currencies.
Schulman believes that the legacy financial system is no longer working for ordinary people. As such, a change in the financial landscape is needed. He believes PayPal and its digital infrastructure can help make money management and movement faster, less expensive, and more efficient.