The volatile nature of Cryptocurrency is probably one of the reasons why many people have decided to keep off the trade. The price fluctuations are just crazy and can change multiple times within a few hours.
Well, PayPal Chief Financial Officer John Rainey seems to agree more. In an interview with giant American media house CNBC, he pointed out that traders using their payment platform for transactions had second thoughts on whether to accept payments in Cryptocurrency because of their high volatility.
In Rainey’s opinion, crypto payments pose a great challenge for most of their customers who would like to make payments at specific times without necessarily having to wait for them to hike in value. He added that this method of payments could lead to big losses because the value of these virtual coins could reduce significantly within a short period of time.
FIAT Money Preferred Over Cryptocurrency
According to him, the volatile nature of Cryptocurrencies is the main reason behind their slug adoption as a way of payment. Nobody wants to be paid 0ne thousand dollars and an hour later receive less because of fluctuating values.
He further notes that a transaction involving 1BTC as payment was once recorded at 19000 USD at the end of last year and that has since changed in the last couple of months with a similar transaction now being valued at 8000 USD, barely half of its value 6 months ago. This trend in volatility has prompted most of their clients to shift to other stable forms of payment such as FIAT money.
FIAT money is highly stable and has been adopted globally as the most convenient and safe methods of payment with regards to value fluctuation. They give the users certainty of purchasing power over a long period of time compared to Cryptocurrencies.
Contradicting Opinions From Top Market Players
Meanwhile, PayPal’s top management and CEO Daniel Schulman and recently the CFO John Rainey have issued similar statements against the use of Cryptocurrency as a payment method but one of its top directors thinks otherwise.
The Director indicated that there is a lot of positivity in using Cryptocurrency as a means of payment. He noted that the crypto market is first gaining global acceptance and soon the scope of using Cryptocurrency for payment will have a wider scope.
Similarly, PayPal’s main online payment rival Square went a step ahead to introduce a payment scheme within their system that fully incorporates the use of Bitcoin for payment. Contrary to the concerns raised by PayPal, this method seems to have fitted into the market and is working perfectly well.
Square CEO Jack Dorsey indicated that a good number of their clients have accepted and are using this new method for payments that include huge transactions. They expect the number of clients using this method for payment to continue growing with the spread of Cryptocurrency.
He added that his company expects payment using virtual coins to rise and eventually become one of the standard methods of payments in online business.