The CEO of payments giant PayPal has revealed more details about the firm’s lofty cryptocurrency ambitions at a recent Q3 earnings call.
PayPal CEO Dan Schulman expanded on its plans to aggressively push into the crypto sector next year, which included support for central bank digital currencies (CBDCs). The comments came at the company’s third-quarter earnings call on Monday evening.
According to Schulman, only 10% of customers in the U.S. have access to the new crypto service at the moment, with the rest of the country gaining access in the next two to three weeks. However, PayPal saw enough interest following its Oct 21 announcement, that the company has increased weekly crypto purchase limits from $10,000 to $15,000.
PayPal Working with Regulators
Highlighting ongoing efforts with regulatory bodies, Schulman stated that this is just the beginning of the opportunities that PayPal sees as it works towards accepting new forms of digital currencies, adding;
“There is no question that digital currencies are going to be rising in importance, having increasing functionality, and increasing prominence.”
Schulman predicted that there would be greater opportunities for the firm in an economy that embraces digital payments, identity, and financial services. He added that the initial response has been very positive with heightened activity on the new crypto wallets;
“We’re seeing people who have already bought crypto open their wallet several times a day to check out what’s happening with their crypto investments,”
Additionally, Schulman revealed that PayPal’s cryptocurrency services will be made available to international customers during the first half of 2021 when it will also be launching on its mobile payments app Venmo. PayPal has already been eyeing a number of crypto acquisitions as it expands into the space.
CBDCs When, Not If
On the subject of central bank digital currencies, Schulman stated that it is ‘a matter of when and how they’re done, and not if.’ He added that PayPal is the perfect fit for centralized currencies due to its global reach;
“I think that our platform with its digital wallets and the scale that we have right now can help shape the utility of those currencies. That can range from interoperability between wallets, between the currencies themselves, and, importantly, into our network of merchants for commerce.”
Cryptocurrency market capitalization climbed by almost 14% following the PayPal announcement last month, rising from $360 billion to top out at its highest level since April 2018 at $410 billion according to TradingView.
Markets are starting to correct now but there is little doubt over the bullish influence PayPal has had on the industry in recent weeks.