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Paypal says that its demand for Bitcoin “exceeded expectations”

Demand for cryptocurrency exceeded PayPal’s initial expectations, said the global payments giant.

According to the company, its customers’ appetite for cryptocurrencies was much higher than expected. Now, the company is studying the possibility of expanding its services in the cryptocurrencies world.

Paypal says that its demand for Bitcoin "exceeded expectations"

Paypal says that its demand for Bitcoin “exceeded expectations” (Image: WWD)

“The demand for cryptocurrencies has been multiple times greater than what we initially expected. There is a lot of excitement,” said PayPal President and CEO Dan Schulman in an interview with Time magazine.

As Schulman pointed out, the current financial system needs modernization. This is because it works in an “inefficient” way due to slow and excessively expensive international transactions.

Dan Schulman, president and CEO of PayPal, at the company's offices in San Jose, Calif., in 2016. Dan Schulman, president and CEO of PayPal

Dan Schulman, president and CEO of PayPal, at the company’s offices in San Jose, Calif., in 2016. Dan Schulman, president and CEO of PayPal (Image: Money Inc)

In this sense, the executive said that the financial system is ready to see more changes in the next five to ten years than in the past two decades.

“Ten years from now, you will see a tremendous decline in the use of cash. All form factors of payment will collapse into the mobile phone. Credit cards as a form factor will go away, and you will use your phone because a phone can add much more value than just tapping your credit card. And so when all of those things start to happen, then central banks need to rethink monetary policy as well, because you can’t just issue more paper money into the system because people aren’t using paper money. And so this is the advent of digital currencies,” he said.

In addition, Schulman said that central banks will have to rethink their monetary policies as people stop using physical money.

Finally, the executive also stated that central bank digital currencies (CBDCs) could benefit from emerging technologies, such as blockchain.

“They are basically digitizing a fiat currency like the US dollar,” noted Schulman.

At the end of last year, PayPal announced its plans to introduce the possibility to buy, hold and sell cryptocurrencies.

Since then, the payment giant has accepted Bitcoin and Ethereum. Amid the escalating price of cryptocurrencies, it also implemented Bitcoin, Ethereum, Litecoin and Bitcoin Cash on its Venmo platform.

With informations: Time Magazine

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