PayPal CEO Dan Shulman has given a big interview in the framework of 2019 World Economic Forum in Davos, Switzerland. He brought up various urgent topics, in particular he told about setting up a $25 million fund, called PayPal Credit, to help federal workers that were hurt due to government shutdown. Interestingly, he also touched the topic of cryptocurrency.
The CEO of PayPal revealed that he is not confident on merchants adopting Bitcoin, as there are few retailers, who are currently accepting the crypto as payment.
Shulman said: “We’re not seeing many retails at all accept any of the cryptocurrencies….But I think the underlying technology is still very interesting.”
In addition, Shulman explained his position, he thinks that crypto is just “a reward mechanism for implementing blockchain”, crypto’s main role is to showcase the technology to the public.
— Squawk Box (@SquawkCNBC) January 23, 2019
In January 2018, Dan Shulman told TheStreet that Bitcoin’s volatility is the main reason why he gave up on crypto. He stated that a retailer had to count his profits and losses after every sale due to a bitcoin bouncing up and down by 15% over a couple weeks period. As retailers have very narrow margins, the difference between income and lost money can be huge.
Shulman cited: “The volatility of [bitcoin] makes it actually unsuitable to be a real currency that retailers can accept.”
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