PayPal Should “Definitely Support” Bitcoin, Said The CFO (+ Video)
The Chief Financial Officer of PayPal believes that the company should “definitely support” Bitcoin, the world’s most popular cryptocurrency.
Invited by CNBC on Mad Money show, John Rainey, CFO of PayPal, explained why the company did not “see a lot of interest” from the external environment regarding the use of cryptocurrencies. The reason is their volatility.
“Because of the volatility of the cryptocurrencies, 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,” explained Rainey.
You can watch the interview on YouTube:
The vision of PayPal isn’t impressive, as the company has integrated Bitcoin into its Braintree as a payment method as early as 2015. Since then, Bitcoin’s value has fluctuated steadily. From $ 20,000 in December 2017, it has even reached $ 6,000 in the first quarter of 2018. It’s incredible how fast it has diminished, a conclusion that can also be associated with buyers’ interest.
According to Bitcoinist, the Lightning Network solutions continue to influence the decisions taken by traders and the fiat-crypto exchange operations, offering low fees and the possibility to realize transactions in a fast and secure way.
The Chicago-based payment solution, Braintree, has become a topic discussed and compared to the Lightning Network and its benefits. The division of PayPal starting with 2014 retains a fee of 2.9% plus $ 0.30 per transaction.
According to Rainey, PayPal was about to abandon the idea of accepting Bitcoin. “Right now, we don’t see a lot of interest from our merchants. But if it’s something that stabilizes in the future and is a better currency, then we’ll certainly support that,” he explained.