You can watch PayPal CEO Dan Schulman interview with CNBC here:
The company’s CEO, Dan Schulman, sees a lot of value in Bitcoin as a currency. He envisions a scenario where BTC eventually becomes more of a means of payment than a tool of savings.
PayPal and Bitcoin
PayPal recently started offering bitcoin to customers in America. A significant difference with most other providers is that you cannot withdraw or send BTC. The bitcoin always remains in possession of PayPal. You cannot withdraw it from the platform.
The company has to buy bitcoin to facilitate these services: “PayPal bought 70% of fresh Bitcoin.” With a bit of bad luck, the BTC that PayPal buys will never end up directly in another market. That will only happen if the company ever decided to allow withdrawals. But it doesn’t seem like it for now.
If you want to profit from any bitcoin price increases, you can get started with PayPal. However, if you want to have control over your BTC and decide who you transfer it, and how you store it, you better stay away from the payment processor.
Schulman sees bitcoin as a means of payment and therefore as a currency:
“I think there are more and more things that make bitcoin widely accepted. Ultimately bitcoin will become more stable and probably also worth more.”
PayPal has 28 million partners that can pay with bitcoin next year. But here also applies: the paid BTC are not sent to the retailers. They just get their money from PayPal in a local currency.