Perhaps the biggest news of last month was that PayPal is entering the Bitcoin market.
Today CEO Daniel Schulman comes with more clarity about the payment processor’s ambitions with Bitcoin but also with central, digital bank tokens (CBDCs).
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Bitcoin and PayPal
In 2021, PayPal is going to bet on a wide range of cryptoproducts and services. So sales of Bitcoin and other cryptocurrency’s will also Bitcoin Era go through Venmo and customers outside America, says CEO Dan Schulman.
Currently, only 10% of US customers have access to the new crypto service. The rest of America will have access to the tools in the next two to three weeks, says Schulman.
The concept seems to catch on. Initially, the company set a weekly purchase limit of $10,000. Due to the enormous interest, it was decided to raise the limit to $15,000 per week.
„The waiting list is two to three times longer than we expected“.
Jeremy Allaire is one of the lucky ones who could already use the platform. He bought Bitcoin from PayPal for $100. Since last month, PayPal has been available to buy, sell and store the crypto coin. It is not (yet) possible to withdraw BTC from the platform.
Central Bank Digital Currency
In addition, Schulman specifically mentions that, as a company, they see a future in digital assets and digital identities. The Central Bank Digital Currencies (CBDC) therefore also fit into this list. He also mentions that PayPal is out to create the „most complete and convincing wallet“.
With this, he implies that they are striving to deal with CBDCs as well as Bitcoin.
„About the CBDCs: it is not a question of whether they will get there, but when and how.
He indicates that with PayPal they want to build a kind of bridge between the traditional financial world and the future. Interoperability is one of the eye-catchers.
At the same time, they are also looking for acquisitions. Last week, for example, they revealed that the payment processor hopes to take over the custodial BitGo. It has not yet been communicated whether this deal has been completed.