PayPal will accelerate its cryptocurrency rollout across multiple markets in 2021, including plans to eventually support central bank digital currencies, the payment processor said during its Q3 earni
PayPal will accelerate its cryptocurrency rollout across multiple markets in 2021, including plans to eventually support central bank digital currencies, the payment processor said during its Q3 earnings call.
The company launched crypto services for U.S. clients last month. Currently, 10% of PayPal's U.S. customer base can buy digital assets. The rest will gain access within two to three weeks. PayPal also raised its weekly purchase limit from $10,000 to $15,000 following the strong initial demand for the service.
CEO Dan Schulman told investors PayPal will expand into new territories during the first half of 2021, bringing cryptocurrency services to Venmo and international markets. "Over the course of next year, you'll see us move into a couple of different areas," Schulman said on the earnings call.
Schulman connected the expansion to broader shifts in the payments landscape. Digital transactions are replacing physical ones as consumers and businesses move toward digital-first financial services. Economies that have built out digital payment infrastructure and established digital identity systems represent the biggest opportunities for PayPal's growth.
Central bank digital currencies have been a major topic of discussion among policymakers in recent months. China and Uruguay have made substantial progress developing their CBDCs, while Canada, Australia and the European Union continue researching how to implement them. No central bank digital currency has been released for commercial use yet, but Schulman expects they will arrive soon. PayPal plans to build the most comprehensive digital wallet available, one designed to support CBDCs when they launch.
Schulman sees PayPal's scale and global infrastructure as advantages in shaping how central bank digital currencies function within the broader economy. He believes the existing financial system has failed ordinary people. Digital infrastructure offers a path to faster, cheaper and more efficient handling and movement of money.
