Bitcoin Technology Has “High Likelihood” On Payments Use – PayPal CFObr>
One of the top executives for online payments giant PayPal claims bitcoin and other cryptocurrencies are not yet there as a reliable payment. But he wouldn’t rule it out for the future.
Speaking to the Wall Street Journal, chief financial officer John Rainey noted that PayPal was one of the first companies to accept bitcoin, starting in 2015.
However, “Given the volatility of bitcoin right now, it’s not a reliable currency for transactions because if you’re a merchant and you have a 10% profit margin, and you accept bitcoin, and the very next day bitcoin drops 15%, you are now underwater on that transaction,” he said.
Rainey did say there was a “very high likelihood” of bitcoin being accepted for payments at some point. “The technology, there is real merit to it. I do think, though, it will be years down the road before we see the kind of ubiquity and acceptance that make it a form of currency that is used every day.”
Former PayPal executive David Marcus was added to crypto exchange Coinbase’s board of directors last year, sparking rumors of potential tie-ins between the two companies.