Dan Schulman, the CEO of PayPal, described cryptocurrencies as merely “an experiment” with a future that is “unclear” – a statement that dimmed expectations that the payment processing company has plans to make it big in the crypto industry. Schulman’s statement was spoken in Manhattan at New York’s Economic Club. According to Bloomberg, Schulman declared, “Regulations need to be sorted out and a whole number of other things.. It’s an experiment right now that is very unclear which direction it will go.”
Paypal’s serious foray into cryptocurrencies was seen when it filed for a patent that would see an increase in speed and a more secure privacy for digital currency transactions. Paypal’s system required a wallet structure with multiple tiers that instantly divide users’ balances in secondary wallets. Every wallet is set to hold a currency amount that is pre-defined. Users would then transact by exchanging private keys onto the secondary wallets. The transactions, which would occur behind the scenes and not on the crypto network, would be private and require little to no cost.
Jason Deleeuw, a Piper Jaffray analyst, notes that PayPal’s application for a patent was done eighteen months ago. He sees the patent’s timing as well as the recent public comments about it as an indication that PayPal’s plans to make cryptocurrency payments a large scale possibility “have been de-prioritized”. Deleeuw believes that the crypto assets PayPal possess contains long-term merit and could soon be used as “an everyday form of payment”.
A spokeswoman from PayPal declared that the company’s interest remains in technologies that fulfils their goal of financial inclusion She stated, “We are interested in any technologies, processes or applications that have the potential to enable of our mission of financial inclusion.” Meanwhile, Schulman believes that blockchain, not bitcoin, will be the game-changer in the crypto landscape. He declared that virtual currencies are merely “just one application”. PayPal’s spokeswoman reported that the company is considering the possible ways to utilize blockchain in the near future.