PayPal CFO Sees Volatility as a Barrier in Adopting Cryptocurrency
It’s normal for a sector to collect different opinions about a service, product or idea. In the interview offered by John Rainey, PayPal’s CFO for CNBC on 16th May, he emphasized that the main reason why investors are not interested anymore in adopting cryptocurrencies is their high volatility.
PayPal was one of the pillars of digital platforms to accept crypto assets. Customers are free to accept payments in Bitcoin via PayPal from 2014 when the price for 1 BTC was $ 400.
Currently, the company no longer receives so many requests from retailers in terms of digital assets for the sole reason that these are volatile, which may cause substantial loss of financial resources.
“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,” explained Rainey.
“But if it’s something that stabilizes in the future and is a better currency, then we’ll certainly support that,” the CFO added.
However, the company continues to invest in this component of its organizational system. One of the confirmations was the patent application submitted in March 2018 for a project that aims to increase the operational speed of crypto transactions. If this project is approved, traders will benefit from the fast pace of money transfers and reduced commissions.