US payment giant PayPal’s CEO has recently shown interest in adopting Decentralized Finance and Smart Contracts to build more efficiency into the system.
During the Q2 earnings call, CEO Dan Schulman explained the current financial challenges the industry has been facing, such as the amount of time it takes to transfer funds as well as the inaccessibility of banks for some people. He said that he is looking to use smart contracts and DeFi as a medium to construct a system that is much more efficient, cheaper, and accessible for everyone.
These statements came during PayPal’s announcement of the financial results for the second quarter of 2021. He made those remarks during the income and expenditure debriefing session, transcripted by the financial and investing advice company, The Motley Fool. Coinpost media and The Block also reported on the same.
Schulman talked about DeFi and smart contracts after an analyst from Barclays Investment Banks asked the question. He asked his updated views on cryptocurrencies and blockchain and how they are planning on engaging with the ecosystem. To this, Schulman replied:
“We’re working right now on transfers to third-party wallets, and we really want to make sure that we create a very seamless process for taxes and tax reporting. And so we’re really looking at how do we integrate that into both the trading and the buy with crypto on our platform.
But I will say this, like all of that is interesting, but it isn’t the main course in terms of what we are trying to do with our blockchain and digital currency business unit. We are clearly thinking about what the next generation of the financial system looks like, how we can help shape that.”
He further explained how PayPal is working with regulatory bodies and central banks across the world that are considering the issuance of Central Bank Digital Currencies (CDBC). There is a renewed opportunity to think of a new infrastructure that is cheaper, faster, and efficient. He explained:
“And there’s a lot of desire by governments to really think how can you create a more efficient system using new technology to bring in more citizens, more underbanked, underserved citizens into the financial system because they disproportionately pay a higher take rate than those who are fully banked or higher income levels. And there’s a lot of connections between digital wallets And central-bank-issued digital currencies.”