It looks like people associated with PayPal are going to play a very big role in the field of cryptocurrencies. Not only many of the ex-PayPal employees have been hired by Facebook to work on its own crypto project but PayPal itself is also working on both blockchain and cryptocurrencies. This has recently been confirmed by none other than PayPal CFO John Rainey in an interview to Yahoo! Finance. However, at the same time company is also wary of the current situation in the cryptocurrency market.
Rainey made these remarks during an interview to Yahoo! Finance on 7th of May. He said that while his company had previously allowed merchants to accept payments in Bitcoin, the viability of that project always remained in question as merchants were frequently converting Bitcoins to fiat currencies like US dollars and Euros. The instability and volatility of the project, he said, still remains a major hindrance to mainstream adoption. But regardless of that, the company is working on both blockchain and cryptocurrencies. He said:
“We have teams clearly working on blockchain and cryptocurrency as well, and we want to participate in that in whatever form it takes in the future. I just think it’s a little early on right now.”
PayPal has been studying cryptocurrencies for quite some time in recent months. Last month it was also awarded a patent for a security system called “Techniques for cryptocurrency ransomware detection and mitigation.” It’s not clear, however, that when will the company finally launch any other crypto or blockchain focused product offerings in the market.
PayPal was (and still is in many geographies) the go-to method of sending money until cryptocurrencies were discovered by the masses. Therefore, its interest in crypto and blockchain is obvious. Its stance on Bitcoin and other cryptocurrencies has been very fluid (read: frequently changing) since ever. One of its co-founders had suggested that Bitcoin is a scam, while one of the current Board members at PayPal has said that Bitcoin may surge as much as 250 times from its current value. Recently company also invested in a blockchain tech startup called Cambridge Blockchain. That startup is developing technology that will allow people to decentralize the storage of their digital identities without the need of any intermediaries.