It isn’t really correct to draw a comparison between Bitcoin and Paypal, however it is fair to say that both offer opportunities for electronic payment for goods and services and therefore a certain amount of rivalry is inevitable. The difference is that Paypal is very much a money transfer platform and payment gateway. The key difference is perhaps in the word ‘money’, which – as we have seen recently – is a much disputed term when it comes to cryptocurrency. Just yesterday the Pennsylvania Department of Banking and Securities announced its decision to exclude cryptocurrency from its definition of money, joining a growing list of bodies doing so.
Despite the potential for massive rivalry, Paypal’s people have largely kept their heads down and not gotten drawn into speculation as far as the cryptocurrency industry goes. Until now, that is.
Recently, Paypal CEO Dan Shulman has jumped into the ring with a series of remarks. “I think the underlying technology is still very interesting…” he tweeted, but went on to say that he sees cryptocurrency as “a reward mechanism for implementing blockchain, as opposed to really a currency.”
Former Paypal CEO has added to the maelstrom, describing cryptocurrency as a “cult” and accusing it of making false claims. His view is that Bitcoin is on a crash course to zero.
So is this the beginning of an all out war between Paypal and cryptocurrency payment service providers – and who will win? Paypal may have the upper hand with the market’s current volatility, but the sceptics in the house might just have underestimated the power of crypto. It wouldn’t take a seismic shift in the world’s economy to see a paradigm shift in the way businesses and customers transact.