PayPal’s president and CEO Dan Schulman has expressed enthusiasm for the power of Bitcoin, stressing the company’s commitment to the Lightning Network at its recent earnings call. In his address, Schulman emphasized the enduring potential of the cryptocurrency and digital payments, and reminisced on PayPal’s long history of disrupting the payments industry. For all those watching the payments scene, Schulman’s comments offer a glimpse into PayPal’s vision of a near future, one where Bitcoin has fully embraced the mainstream.
1. PayPal President Commits to Bitcoin
Dan Schulman, President and CEO of PayPal, recently made an announcement that the company will begin to support Bitcoin.
According to Schulman, PayPal took this step to promote the mainstream adoption of digital payments and “provide their customers with more options for buying, selling and transferring money.” [[1](https://www.coindesk.com/paypal-chairman-bitcoin-will-play-a-very-important-role-in-the-future-of-finance)] This is a major milestone for Bitcoin, as PayPal is renowned for their dedication to security and trust.
PayPal also held a vote with their board of directors that results in the company’s plan to allow its customers to buy, store and sell cryptocurrencies. [[2](https://www.ft.com/content/ab1d0825-9247-46e4-8d17-84ce46f813ec)] Additionally, benefits such as the ability to purchase Bitcoin directly from PayPal’s internal wallet and to sell BTC for cash have been implemented.
Prior to making this decision, PayPal conducted extensive research on blockchain technology and how it can be integrated into existing financial infrastructure. [[3](https://www.pymnts.com/cryptocurrency/2020/paypal-bitcoin-cryptocurrency-research/)] Following this study, PayPal decided to move forward with the implementation of Bitcoins.
Schulman cites the recent pandemic as the primary factor in this sudden shift, noting that digital payments became more appealing so businesses could continue to operate without face-to-face contact. Moreover, this move is beneficial as people become more adaptive to digital currencies. [[4](https://www.techradar.com/in/news/paypals-bitcoin-plans-are-set-to-give-cryptocurrency-big-boost)]
The presence of Bitcoin in a company of PayPal’s calibre demonstrates the mainstream potential of cryptocurrencies. With PayPal’s new offerings, customers now have easy access to the crypto-world with an established source of trust.
2. PayPal Backs Lightning Network Development
PayPal has recently announced its support for the open source Lightning Network. The Lightning Network is a payment protocol which operates on top of the bitcoin blockchain, providing a network of secured payment channels that enable instant and low-cost payments. Through this protocol, bitcoin transactions are faster, cheaper, and more secure.
PayPal’s backing of the Lightning Network will help to add strength to the bitcoin. PayPal will be helping to expand the network’s capabilities and further develop its software. The Silicon Valley giant is focused on making merchants’ payments more efficient and secure. This further legitimizes Bitcoin as a viable payment system.
Benefits for Bitcoin:
- Improved scalability, transaction speed, and security.
- Cost savings due to reduced fees.
- Trustworthy developers with reliable technical resources.
- By partnering with PayPal, more companies are likely to use and accept Bitcoin.
John Donahoe, President of PayPal, is clearly demonstrating his commitment to the future of cryptocurrency. His endorsement of Bitcoin, especially through his commitment to establishing the Lightning Network, places PayPal at the center of the cryptocurrency evolution and speaks to the power and growth of the cryptocurrency market. With the support of Fintech giants like PayPal and Donahoe’s own enthusiasm for Bitcoin, the cryptocurrency industry is sure to continue to develop.