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Bitcoin is the largest cryptocurrency by market capitalization and volume. After a bearish run for one and a half year, it is starting to show signs of a bullish run again. Other cryptocurrencies mostly follow the trend of Bitcoin in terms of their prices. Which is why the signs of market improvement have gotten the crypto community excited.
However, PayPal CFO John Rainey, thinks it is still too early to focus on Bitcoin. He was talking to Yahoo! Finance for an interview.
“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].”
Admitting to the fact that as the social media giant Facebook, PayPal is working on their own blockchain-powered solutions. The company just isn’t focused on Bitcoin.
He also expressed his views, in agreement with the company’s CEO Dan Schulman, that retailers are skeptic of using Bitcoin and other cryptocurrencies because they are afraid of the volatility of the crypto sector as a whole. “What we saw because of the instability of the currency – the fact that there was so much volatility from one day to the next – if a merchant accepted that they would quickly convert it into a more stable currency like the euro or US dollar,” he said commenting on the fact that the volatility of the crypto market is pushing away retailers from accepting cryptocurrencies like Bitcoin, Ethereum, and EOS as an acceptable method of payment.
The interview drew a lot of criticism from the crypto community. The argument against PayPal is that a PayPal transaction costs 80 percent more than transferring the same amount through Bitcoin. It is clear from Rainey’s interview that the stance against Bitcoin is not out of care for retailers utilizing their product but because of the fact that Bitcoin could soon become a rival of legacy services like PayPal.
Therefore, PayPal’s stance on Bitcoin and cryptocurrencies is typical of a legacy financial business operating as a fiat market intermediary. Accepting the relevance and potential of cryptocurrencies would render PayPal’s own existence useless.