“This is just the beginning of the opportunities we see as we work hand in hand with regulators to accept new forms of digital currencies.”

Next, in the Q & A section of the earnings call, David Togut, Equity Research Analyst at Evercore ISI, asked about “the impact on PayPal’s ecosystem from introducing cryptocurrencies.”

Schulman replied:

“So, I’ll just take a step back clearly, the world is rapidly moving from physical to digital on that, so true for payments and financial services. My conversations with central banks, with the regulators, with a number of folks in the crypto field, there’s no question that digital currencies are going to be rising an importance, having increasing functionality and increasing prominence CBDCs, from my perspective and all my conversations, are a matter of when and how they’re done, not AF.

“And I think that our platform with its digital wallets and the scale that we have right now, can help shape the utility of those currencies that can range from interoperability, between wallets, between the currencies themselves, and importantly, into our network of merchants for commerce.

“And I do think that our platform and all the new digital infrastructure that we’re putting in place right now can help make that management and movement of money more efficient, and less expensive and faster…

“Now, we’ve only rolled this out to 10% of our base. We did that a couple of days ago, but our waiting list was two to three times of what our expectations were. We’re going to take up our $10,000 limit per day to $15,000 per day, based on the demand that we’re seeing and we’ll roll out to 100% in the U.S. in the next two weeks to three weeks. They’re going to expand internationally and we’ll expand into Venmo on the first half of next year.

“So that’s what we’re starting off with and we’re seeing people who have already bought crypto open their wallet several times a day to check on what’s happening with their crypto investments. We’re beginning to already see some halo effects that go on with that.

“But what I’m really excited about is what we’re going to introduce next year, which is, I think going to dramatically increase the utility of cryptocurrencies by enabling somebody, who holds a cryptocurrency in a PayPal account to instantaneously transfer that crypto into fiat currency at a set rate. So, volatility is taken out of the equation. No incremental fees charged for them to do that transaction from crypto into a fiat and then immediately settle in fiat with all 28 million of our merchants at our current take rates.

“And so you have no additional integration needed at any of our merchants and this is just an elegant way of using cryptocurrencies as a funding mechanism, and yes, it is a lower cost funding mechanism for us in terms of those transactions.

“But that’s just the start of things that we want to go and do with crypto capabilities over the course of next year you’ll see us move into a couple of different areas. Those are the only two we’re talking about right now, but I see a lot of interesting things we can do with cryptocurrencies, with functionality, increasing functionality, and again, working hand in hand with regulators every step of the way, which is so important and what they expect from us in order to be a market leader in the digital currency space.


News source