PayPal’s CFO John Rainey has recently gone on CNBC’s Mad Money to discuss cryptocurrencies, why they’re opting to not use it, and what can change that.
What many people don’t know is that PayPal actually tried to accept Bitcoin as a payment solution in 2015 through their subsidiary company Braintree. Rainey goes on to explain the biggest issue with using cryptocurrencies is their volatility.
“If you’re a merchant and you have, let’s say, a 10 percent margin on a product that you sell and you accept bitcoin, for example, and the very next day it moves 15 percent, you’re now underwater on that transaction.”
Rainey has also stated there isn’t much interest on the merchant’s side to accept Bitcoin at the moment, all though he is not completely ruling crypto out for good. If cryptocurrencies are able to stabilize in the future and is a better currency overall, PayPal will definitely be on board with integrating crypto into their platform.