PayPal CEO: In early 2021, we allowed cryptocurrency to become a source of funds for any transaction with 28 million merchants

Author: Sam Bourgi;

Translated by: Pan En, TechFlow

PayPal CEO Dan Schulman said in an interview with CNBC that the COVID-19 pandemic has accelerated the shift toward digital forms of payment. PayPal aims to be at the forefront of this ongoing digital transformation.

He stated that during this pandemic, "the use of cash has dropped dramatically," adding that "40-70% of consumers no longer want to handle cash."

Schulman also believes that as more businesses and consumers move toward "digital payments and digital forms of money," cryptocurrencies are on the verge of mainstream adoption.

PayPal isn't just making it easier for people to buy and hold cryptocurrency; the service will integrate with its existing merchant payment platform, allowing businesses to accept digital forms of payment.

"One of the things we're enabling is not just making it easier for people to buy, sell, and hold cryptocurrency, but importantly, early next year, we will allow cryptocurrency to be a source of funding for any transaction across all of our 28 million merchants. And that will significantly enhance the utility of cryptocurrency," Schulman said.

Before launching its crypto services, PayPal consulted with global regulators and central banks. Schulman said it's only a matter of time before these monetary authorities issue their own central bank digital currencies, or CBDCs.

"It's not a question of if, but when and how—we'll begin to see more and more central banks issuing forms of digital currency. I think you'll see increasing utility built around cryptocurrency."

PayPal launched its cryptocurrency trading service in the U.S. earlier this month. These services will roll out globally early next year.

The global payments giant, which has over 300 million active users, has been rapidly purchasing bitcoin (BTC) and other cryptocurrencies. As recently reported, PayPal has acquired nearly 70% of newly circulating bitcoin. This supply shortage is believed to be a major reason behind bitcoin's rapid price appreciation over the past month.

Some of bitcoin's most vocal critics argue that the virtual currency lacks intrinsic value. In response, Schulman said: "All forms of money are based on trust and assigned value, and that value comes from trust."