In recent times, news has been flourishing in regards to traditional businesses incorporating the likes of blockchain technology and cryptocurrencies to better their operations. One example of this is the announcement made by the team at PayPal – where the firm revealed earlier in April that they’ve joined a Series A investment in Cambridge Blockchain for digital identity purposes.
However, it seems like said decision to participate was merely to understand the technology, but not necessarily to implement it (at least not as of yet). In a recent interview with Yahoo!’s media property, Yahoo Finance, PayPal’s Chief Financial Officer, John Rainey disclosed that the firm thinks it’s too soon to dive into blockchain and cryptocurrencies.
In particular, he shared:
“We have teams clearly working on blockchain and cryptocurrency as well, and we want to take part in that in whatever form that takes in the future – I think it’s a little early on right now [on bitcoin].”
According to Rainey, PayPal’s current goal is to see how to further expand upon the firm’s abilities rather than trying to improve or change the payment system from scratch. Yahoo Finance noted that PayPal has since gained a $500 million stake in Uber, emphasizing that this decision comes from both companies’ desire to develop a payments platform together.
Will PayPal’s entrance within the blockchain industry validate the latter’s efficiency? Given a current projection made in relation to PayPal’s free cashflow in 2019 as being $3 billion, the firm can be a positive influence. Contrariwise, this is not the only sentiment that has been previously expressed.
Interestingly, the Chairman of Shyft (a blockchain network provider), Joseph Weinberg’s viewpoints were summarized by Mobile Payments Today as follows:
“While they [Facebook and PayPal] will likely spark more innovation in the field [blockchain] and demonstrate that blockchain is a ‘safe space’, they also might use blockchain technology unethically.”
What are your thoughts on PayPal’s current pause in involving themselves within the blockchain industry? Was it the right thing to do or have they risked their ability to compete within the sector? Let us know in the comments below!