PayPal Chief Executive Officer and CEO Dan Schulman said Thursday that he sees PayPal playing a major role in the utility of central bank digital currencies (CBDC). This was reported by the MDC CoinDesk.
Schulman said PayPal is preparing to be “the digital wallet for global CBDCs.” PayPal’s recently unveiled crypto product roadmap includes becoming a CBDC platform.
The CEO of PayPal also said that he sees that PayPal digital wallets will become the way central banks distribute tokens to consumers.
“PayPal is a perfect complement for central banks and the government to distribute these CBDCs in a modern way so that more people can access the digital economy. And we believe that it is a focus area of this new business unit that we have created.
Still, some central banks are a long way from issuing a CBDC. The head of the European Central Bank, Christine Lagarde, has said that a digital euro could take years to achieve, and the Federal Reserve is still in the research phase of a possible digital dollar. Meanwhile, Schulman said PayPal is looking to add profit to existing assets.
PayPal unveiled its product roadmap this month
PayPal presented its product roadmap earlier this month in its Q4 2020 earnings call. During that call, Schulman called the current financial system “outdated.” Which led PayPal to build a new unit focused on blockchain and the digital economy. Schulman reiterated those sentiments.
“As we move towards modern technology, it could be distributed ledger technology, it could be another technology. We will see a change in the way that digital forms of value will move around the world, “he said.
PayPal plans to take a closer look at those other digital forms of value. Schulman’s comments hinted at broader aspirations than just CBDC distribution.
The ‘Step 1’ in the product roadmap is to enable crypto as a financing instrument on PayPal. But Schulman also indicated that PayPal is looking to digitize other assets through the use of smart contracts and tokenization.
He also indicated that part of creating utility in the present is thinking long term. And what a new financial system would look like, according to Schulman.
PayPal added that customers using its cryptocurrency services have seen a 12% increase in weekly transactions on the platform. This is partly because more than 40% of US PayPal customers using cryptocurrencies return to complete more than two additional transactions.
Recall that PayPal allowed users to buy, sell and hold cryptocurrencies, including Bitcoin (BTC), in the month of October.