A few months after the giant PayPal launched payments for bitcoin and other cryptocurrencies, user demand for cryptocurrencies on the platform has already doubled the company’s expectations, PayPal CEO Dan Schulman revealed.

Speaking to the magazine,timeShulman stated:

The demand for cryptocurrencies has been more than we initially expected.

There is a lot of excitement.

Schulman explained that cryptocurrencies are only part of the general trend of digitizing everyday payments, which has been accelerated by the coronavirus outbreak.

Ten years from now, he said, there will be a “massive” drop in the use of cash and credit cards.

Instead, most financial transactions will be conducted via smartphones.

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Paypal and Cryptocurrencies:

Speaking to Time magazine, Shulman explained:

When all of these things start to happen, central banks need to rethink monetary policy as well because you can’t just issue more paper money in the system, because people don’t use paper money.

As all of this enhances the spread of digital currencies.

He noted that today’s financial systems are rapidly becoming obsolete due to slow transaction speeds and high fees.

In light of this, companies need to think about modernizing their existing financial infrastructure to make money transfers more efficient, at lower cost, more inclusively, and add more benefit to the system.

Shulman added:

In the next five to ten years, we will see more change in the financial system than we have seen in the past ten to twenty years.

The current financial infrastructure needs to be modernized, because it is ineffective today.

According to him, central bank digital currencies (CBDCs) can also benefit from blockchain technology.

Shulman also explained that a digital dollar could enable the government to open up Federal Reserve funding to other institutions besides banks.

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He added that this could include companies like PayPal, where funding can be made directly from the Federal Reserve into a digital wallet.

This way, the government won’t have to mail stimulus checks, for example, but instead go directly to its digital wallet with digital currency, instant access, and no cost.

After its successful launch of crypto services in the USA, PayPal is already looking to further expand the scheme overseas, with plans to offer the buying and selling of Bitcoin to UK customers.

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