Senior executives at global payments giant PayPal have revealed more details about its plans to aggressively penetrate the crypto sector next year during the company’s Q3 2020 earnings call, including plans to support central bank digital currencies.CBDCs).
“It is clear that the world is rapidly changing from physical to digital,” said PayPal CEO Dan Shulman, highlighting the accelerated speed of change within the payments and financial services industry.
Citing discussions with central banks, regulators, and crypto market leaders, Shulman claimed: “There is no doubt that digital currencies will grow in importance, with increasing functionality and increasing prominence.”
‘CBDCs […] are a matter of when and how they are done, not if. “
PayPalThe general manager said that because of its scale and fame, the company is “useful [CBDCs], ”Including facilitating interoperability with existing payment rails and promoting merchant adoption. Shulman also described the old financial system as “not working” for many ordinary people.
“I really think that our platform and all the new digital infrastructure that we are now setting up can help make that management and money traffic more efficient, cheaper and faster.”
Last month, PayPal announced it would roll out services that allow customers to do that buy, sell and hold crypto assets, sending bullish reverberation across the virtual currency markets. In the rollout, crypto assets will also be backed by PayPal’s merchant network of 28 million suppliers.
In the call, PayPal executives already highlighted the strong demand for crypto services from its customers, with the CEO commenting, “Our base is eager to bring us these capabilities.”
While only 10% of US-based PayPal users currently have access to its crypto services, Shulman noted that the rest of the country is expected to come online before December.
“Our waiting list was two to three times as long as our expectations.”
“We see people who have already bought crypto open their wallets several times a day to see what is happening with their crypto investments,” he added.
In response to the demand, Shulman announced that PayPal will increase its weekly crypto purchase limit from $ 10,000 to $ 15,000.
Shulman also revealed that PayPal’s virtual currency services will be made available to international customers in addition to launching on its Venmo mobile payment app in the first half of next year.
“Over the course of next year, you will see us move into a number of different areas,” added the CEO.