The financial services company – Paypal believes that it is not the right time to declare bitcoin as the future of payments. However, the firm is undertaking blockchain projects and “doesn’t want to miss out this opportunity”
Undoubtedly, the advent of bitcoin has taken the entire world by storm. Particularly, the fin-tech industry is majorly benefited through this and the online financial service provider Paypal has decided to take advantage of its underlying technology – Blockchain.
Speaking on the similar lines, John Rainey, PayPal’s chief financial officer quoted that,
We have teams clearly working on blockchain and cryptocurrency as well, and we want to take part in that in whatever form that takes in the future — I just think it’s a little early on right now [on bitcoin].
Perhaps the reason behind this statement might be due to lesser popularity of bitcoin among the retailers and as said earlier by the CEO Dan Schulman – ” we’re not seeing many retailers at all accept any of the cryptocurrencies “. However, he added that the underlying tech blockchain is still very “interesting”
Also, the major crash of bitcoin price from its all-time high value contributed to questioning its credibility on the future mode of payment. But recently bitcoin rose again to its stable price. This game of volatile pricing influenced the Paypal company to focus on other areas of growth rather than wasting time right now trying to exploit on a nefarious payments system.
Paypal’s investment in Blockchain Projects
As noted by PayPal’s CFO, the firm will continue its shopping spree on blockchain startups on a global level for this year. Essentially, the payments firm invested in a blockchain technology startup known as Cambridge Blockchain very recently.
The startup focuses on empowering individuals to decentralize the storage of their online digital identities without requiring intermediaries. This will pave the way for giving users a new way of proving without sharing privileged personal information unnecessarily.
Also, the payment firm has inked a deal with Facebook’s Instagram to be its payments provider of choice for those now shopping on the platform.
What do you think of this decision by PayPal Inc.,? Do you really think the majority of the market is eyeing on blockchain than cryptocurrency? Let us know your thoughts in the comment section below.