Speaking at the World Economic Forum in Davos, Switzerland, PayPal CEO Dan Shulman revealed that he’s not confident on merchants adopting Bitcoin, stating that very few retailers accept the currency as payment.
“We’re not seeing many retails at all accept any of the cryptocurrencies,” Shulman said. “But I think the underlying technology is still very interesting.”
Shulman explained that it's always been his opinion that cryptocurrencies function more like “a reward mechanism for implementing blockchain, as opposed to really a currency.”
In January last year, Shulman told TheStreet that Bitcoin’s volatile price is one of the main reasons he has steered clear of cryptocurrencies. “The volatility of [Bitcoin] makes it actually unsuitable to be a real currency that retailers can accept,” he said at the time.
“Retailers have very narrow margins. And when you have a bitcoin bouncing up and down by 15% over a couple weeks period, that can be the difference between profits and losing money on every sale.”
Shulman’s comments come shortly after Satoshi Capital, a US-based quantitative crypto hedge fund released a report that reveals $3.3 trillion were sent using Bitcoin last year, which is more than six times the volume sent using PayPal.