PayPal CEO thinks crypto has the power to redefine the global financial system

  • The PayPal CEO sees crypto more as a payments method instead of a tradable asset.
  • Dan Schulman said that crypto along with CBDCs, stablecoins, and digital wallets will form the perfect financial ecosystem.

Financial tech companies are getting increasingly closer to cryptocurrencies while understanding the potential of its underlying technology. In his latest interview, PayPal CEO Dan Schulman speaks about his optimism for crypto and how it can play a major role in redefining the global financial system.

Schulman doesn’t think of cryptocurrencies as just another investment asset class. Rather than playing on price arbitrage, Schulman thinks that the real potential of digital assets lies in payments. He also believes in the intersection of public cryptocurrencies, CBDCs, stablecoins, digital wallets, etc. that will ultimately result in the enhanced utility of payments.

Dan Schulman’s comments came during his interview with CTech ahead of his keynote speech at Axis Tel Aviv. The PayPal CEO said:

I’m very excited about what crypto and digital ledger technology can do to the financial system going forward. I think the initial things that everyone thinks about Crypto, buying and selling it, and what the price of bitcoin is going to be tomorrow, that’s the least interesting part about digital currencies to me. That is thinking about digital currencies as an asset class. To me, the real exciting thing about digital currencies is what kind of utility can they provide in payments.

The battle of CBDCs

Central Bank Digital Currencies, or CBDCs as we know them, have taken center stage in global financial development. China has been leading the CBDC development of its Digital Yuan in the last two years. The Asian economic giant believes that CBDCs will be important for them to establish its economic prowess across the world.

Other countries and regions have also joined them. The European Union is already working on Digital Euro. On the other hand, U.S. President Joe Biden has asked his government officials to put greater focus on the implementation of its CBDC Digital Dollar. Speaking on this matter, Schulman said:

Clearly, across the world, central banks are looking at issuing digital currencies. The intersection between CBDC, stable coins, digital wallets, and enhanced utility of payments through cryptocurrencies is not just fascinating but I think will redefine a lot of the financial world going forward.

PayPal has been closely involved with the crypto space ever since its foray back in November 2020. The company kickstarted crypto trading services in the U.S. and then across the globe. Besides, PayPal has been also working on integrating crypto payments at merchant locations across the world.

Keeping in line with its broader mission, PayPal seeks to have its own crypto in the market. The company is reportedly working on one of its own stablecoin aka PayPal Coin, as confirmed by the executive.

About Author

Bhushan is a FinTech enthusiast and holds a good flair for understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In his free time, he reads thriller fictions novels and sometimes explores his culinary skills.

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