PayPal encryption services to go global in early 2021, CBDC support to come

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Senior executives at global payments giant PayPal revealed further details of its plans to aggressively push into the crypto business next year during the company’s third quarter 2020 earnings call, including plans to support central bank digital currencies (CBDCs).“It’s clear that the world is moving rapidly from physical to digital,” said PayPal CEO Dan Shulman, highlighting the accelerated pace of change in the payments and financial services industries.

Citing discussions with central banks, regulators and leaders in the crypto industry, Shulman said, “There is no doubt that digital currencies are going to gain in importance, have increasing functionality and increasing importance. “

«CBDC […] are a matter of when and how they are made, not if.

PayPal’s chief executive said that with its scale and brand awareness, the company “will help shape the usefulness of [CBDCs]”, In particular by facilitating interoperability with existing payment rails and promoting acceptance among merchants. Shulman also described the legacy financial system as “not working” for many ordinary people.

“I think our platform and all the new digital infrastructure we’re putting in place right now can help make this management and movement of money more efficient, cheaper and faster.”

Last month, PayPal announced it would roll out services that allow customers to buy, sell and hold crypto assets, sending bullish reverberations in virtual currency markets. The rollout will also see crypto assets supported by the PayPal merchant network of 28 million vendors.

During the call, PayPal executives previously highlighted the strength of demand for crypto services from its customers, with its CEO noting, “Our base is very impatient that we are offering these capabilities.”

While only 10% of U.S.-based PayPal users currently have access to its crypto services, Shulman noted that the rest of the country is expected to go live before December.

“Our waiting list was two to three times greater than our expectations.”

“We are seeing people who have bought crypto before opening their wallets several times a day to see what is happening with their crypto investments,” he added.

In response to the request, Shulman announced that PayPal will increase its weekly crypto purchase limit from $ 10,000 to $ 15,000.

Shulman also revealed that PayPal’s virtual currency services will be made available to international customers, alongside the launch of its Venmo mobile payment app, in the first half of next year.

“Over the next year, you will see us evolve in several areas,” added the CEO.

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