September 30, 2022

PayPal CFO Says The Company Might Not Convert Cash Into Crypto

2 min read

PayPal will most likely prevent from investing its money into Bitcoin. Despite the just recently expanding interest from institutions in digital possessions, the United States payment giant will not get into the crypto whirlpool, stated the firm’s Chief Financial Officer.

Confessing Cryptocurrency’s Values but Still Won’t Invest

Although it sees enormous opportunity in the development of digital wallets, PayPal will probably not assign parts of its cash into Bitcoin or other cryptocurrencies. According to a current news report, PayPal’s CFO John Rainey stated that the company does not have any interest in purchasing cryptocurrency. Rather, the company chooses to buy services that improve the network it offers.

The business has actually admitted its belief in the transition to digital forms of currencies and considers it inevitable. In December, PayPal CEO Dan Schulman dealt with digital wallets as “a natural complement to digital currencies” and affirmed that the company preserves and serves 360 million digital wallets.

“We’re not going to invest corporate cash, probably, in sort of financial possessions like that,” stated John Rainey throughout the interview, adding, “but we want to capitalize on this development opportunity that’s in front people.”

Furthermore, Rainey noted that PayPal had actually mapped some strategies to invest its funds in companies that supply “complementary assets to the platform” and bring development. The firm would also present its “buy, offer, and hold” crypto services to the United Kingdom.

“The kinds of services that we’re supplying, like buy now, pay later [and] crypto as an example– even offline QR code– those are the kinds of things that we want to continue to invest in, be it naturally or perhaps inorganically when we see chances in the ecosystem,” discussed the CEO.

John Rainey. Source: Barrons

John Rainey. Source: Barrons Acknowledging Bitcoin and Cryptocurrencies in General

In times when institutional investors and huge names like Tesla and MicroStrategy are making their preliminary steps investing in Bitcoin and crypto, PayPal apparently will not follow the current flow. However, the company still shows quite the rely on the digital assets.

As CryptoPotato reported, the company marked huge gains in its 4th quarter of its fiscal 2020, after including cryptocurrency trading in their list of services. The giant leap came soon after the business received a conditional license from the New York State Department of Financial Services (NYDFS) United States, enabling users of its Venmo service to trade cryptocurrencies.

The payment processing business reported the following rise as its greatest fiscal year, with high payment volume and brand-new onboarded accounts to additional reinforce its scale. Moreover, the firm revealed its active users’ number jumped to 16 million in Q4 2020 alone.

As an entire, in 2020, the business has added 72.7 million net brand-new active accounts, reaching its active account base to an overall of 377 million.

Featured Image Courtesy of CNBC