PayPal CFO sees years before digital coins turn into common payment method
High volatility hinders Bitcoin from being widely accepted by merchants
Bitcoin is not a reliable option for payment transactions presently, given the high volatility in its market price, John Rainey, the chief financial officer (CFO) of US payments giant PayPal, told the Wall Street Journal in an interview.
“If you’re a merchant and you have a 10% profit margin, and you accept bitcoin, and the very next day bitcoin drops 15%, you are now underwater on that transaction,” Rainey explained.
The renowned financial expert believes that virtual currencies may become an everyday payment method in the future, but “it will be years down the road” before the mass recognition of digital payments.
In 2015, PayPal launched its Braintree online and mobile payment platform, which allowed customers to shop from thousands of US merchants using Bitcoins.PayPal co-founder Max Levchin recently called the Blockchain technology revolutionary but remained undecided on the future of digital coins.