Paypal chair, John Rainey, spoke about the benefits of the technology of blockchain and bitcoin as a payment method in the future, in an interview published in the Wall Street Journal this Monday.
On the subject of feasibility and acceptance of cryptocurrency by the payment processing giant, he said that volatility of the market prevents adoption by all major companies because no one wants to lose money. “Given the volatility of bitcoin right now, it’s not a reliable currency for transactions because 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.”
He also stated that the tech of bitcoin is indeed revolutionary and that in the future, when the market ends its incumbent phase and grows mature, it could very well be a common payment system for major retailers and stores all around the globe.
His posture on this issue differs from what other important people in the world of finance have said about bitcoin. Mark Carney, the governor of the Bank of England, recently stated that bitcoin had failed on what it was meant to be, amongst others.