Price Volatility Remains an Issue with Cryptocurrencies, Says PayPal CFO
John Rainey, PayPal CFO, said in an interview with CNBC on Wednesday, that company’s lack of interest in cryptocurrencies is due to the price volatility in the market which directly threatens the viability of millions of its merchants’ businesses.
Payment service PayPal was among one of the first to accept cryptocurrencies on its payment platform, way back in 2014. But as Rainey stated, the volatility in the crypto market is what keeps its merchants so disinterested in cryptocurrencies. He further explained,
“If you’re a merchant and you have, let’s say, a 10 percent margin on a product that you sell and you accept Bitcoin, for example, and the very next day it moves 15 percent, you’re now underwater on that transaction… You could have something that appeals to consumers, but if merchants don’t accept it, it’s of little value. Right now, we don’t see a lot of interest from our merchants.”
However, if the prices stabilize in the future, and cryptocurrencies prove to be overall a better option, then the company would surely support it, Rainey said.
The patent filed by Paypal in March aims to speed up crypto transactions by eliminating the long verification times to make any payment in cryptocurrency. Fundamentally, it wants to ease out the whole process of settling cryptocurrency payments between its merchants and their buyers, on e-commerce platforms.
PayPal, first launched in 1998, today has more than 237 million active accounts, with payment volume at an all-time high, roughly 132 billion USD.
Jack Dorsey, CEO of Twitter and Square, expressed optimism towards the future of digital currency, at the Consensus conference. He looks forward to seeing cryptocurrencies as a legitimate means of global payment. This vision of his is in support with his previous comments on Bitcoin becoming world’s single currency in near future.