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Within the next decade, we will be seeing a lot more changes in the financial system than we have in the past twenty years, Dan Schulman, Chief Executive Officer of PayPal predicts.
In an interview with Time magazine on Sunday, the PayPal CEO said that demand for cryptocurrency has significantly exceeded the company’s initial expectations since it launched crypto trading in 2020.
“Demand on the crypto side has been multiple-fold to what we initially expected. There’s a lot of excitement,” Schulman said.
He continued by saying that current financial infrastructure needs modernization because it’s “inefficient today” due to overly expensive and slow international transactions. According to the CEO, it is inevitable that the global financial system will drastically change in the next five to 10 year.
“Ten years from now, you will see a tremendous decline in the use of cash. All form factors of payment will collapse into the mobile phone. Credit cards as a form factor will go away, and you will use your phone because a phone can add much more value than just tapping your credit card,” he said in the Time magazine interview.
In central banks’ efforts to rethink their monetary policies as people stop using paper money, Schulman believes that central bank digital currencies could benefit from emerging technologies like distributed ledger technology. However, it is necessary for central banks to rethink their monetary policies. “But they’re basically digitizing a fiat currency like the U.S. dollar,” Schulman reflected on existing strategies.
PayPal announced its plans to introduce the ability to buy, hold and sell a number of cryptocurrencies including Bitcoin (BTC) and Ether (ETH) in October 2020. Since then, Bitcoin has traded from $16,000 to all-time highs of $64,000.
Riding on the wave of crypto’s success, PayPal has continued to expand its crypto services to clients. Late March PayPal it launched its crypto check out service to allow crypto payments for merchants. PayPal-owned payments platform Venmo also started offering trading in cryptocurrencies.