PayPal CEO Dan Shulman said that Paypal's entry into the crypto market was the main reason for Bitcoin to rise to record levels in 2020 and could be a secondary reason The upward momentum of Bitcoin that started since the Bitcoin mining bonus split.
During a TV interview with CNBC, Schulman revealed PayPal's plans to expand into digital currencies, and compound the idea that Bitcoin is more than just an investment asset.
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He stated, "With the increasing use of digital currencies in daily trade, I think they are beginning to move from being an asset class to a currency." And when you start moving digital currency as a potential financing tool, I think that enhances its usefulness, and proves it as well. It becomes less volatile as it can be used daily in purchases.
The questions to Shulman were related to PayPal's recent decision to allow its users to pay in digital currencies purchased through its platform.
Schulman explained exactly how Bitcoin works on the PayPal platform, and identified some of the restrictions included in the system, which he mentioned and defined in that users can only pay with the digital currencies purchased through PayPal, and they cannot transfer these digital currencies to any other wallet.
merchants never receive any of these digital currencies, because PayPal converts it into a fiat currency the moment a transaction is done (here, PayPal services can be likened to the way that Most cryptocurrency payment cards work with it.
However, it's a smart way to simplify the payment process for people who want to spend a little bit of digital currency on a service or product. But it is also and crucially not a true crypto transaction between a buyer and a seller, since PayPal always acts as an intermediary.
Schulman explained that in the coming year, users will be able to buy things in cryptocurrency from anyone who accepts payment via PayPal (Currently, this service is available in the states USA only).
and Schulman stated: Early next year, we will allow digital currencies to be a source of financing for any transaction that occurs with all 28 million merchants. When you start moving digital currency as a potential financing tool, I think that enhances its utility and also stabilizes it; Because it can be used daily in purchases.
Technically, Bitcoin will convert into a currency like other traditional currencies and with which it can be bought and held in exchange for services and things, but not in any way a completely non-intermediary system, not. ..
