Before the coming of cryptocurrencies, the go-place for transferring cash used to be PayPal. With the coming of cryptocurrencies and the improved convenience offered by cryptocurrencies, PayPal has taken note of someone better than itself. What PayPal thinks about cryptocurrencies has been ever-changing.
John Rainey, CFO stated, that they are Pro-Blockchain and that they are not fully vested with the cryptocurrency. He further added, “We have teams clearly working on blockchain and cryptocurrency as well, and we want to take part in that in whatever form that takes in the future — I just think it’s a little early on right now [for bitcoin].”
Rainey opined that if a merchant would accept Bitcoin, they potentially convert a stable currency like the Euro or Dollar.
The CFO of PayPal confirmed that they want to be the part of whichever would be the future. However, PayPal has expressed more inclination towards blockchain than with Bitcoin.
The involvement of PayPal is showing prominent signs of involvement in enterprise blockchain use cases as well as adoption. PayPal has recently invested in a blockchain startup known as Cambridge Blockchain. They are focused mainly on the storage of their online digital identities without the need for intermediaries.
Prioritizing or deciding in favor of blockchain over bitcoin is not something new. Several traditional, institutional, and enterprise-based organizations have noted the benefits of blockchain technology. They have expressed their concerns about the speculative nature of the cryptocurrency space.
Several concerns related to the bitcoin is related to the maturation of the market. As the market matures, concerns would decrease. In an immature market, the value of the asset was ever-changing. A highly volatile asset can seldom be considered as an appropriate tool for efficiency and growth. The decline from the $20,000 price range is a very noteworthy speculator bubble burst.
PayPal is working on disrupting technology. Bitcoin is not yet mainstream enough according to PayPal. High volatility would only push the investors to convert their Bitcoin to fiat currency. There would not be too much of appetite for something too risky.
PayPal has not done away with cryptocurrency or bitcoin completely; they have been keeping tabs on the cryptocurrencies and watching its fate ever since 2015.
As opposed to Paypal, FaceBook is on a hiring spree, and they are providing for multiple job openings in the blockchain niche. Ultimately, they cannot help but contemplate on what the technology has to offer.
