PayPal Exec Takes a Shot at the Financial Sector

PayPal Exec Takes a Shot at the Financial Sector

PayPal CEO Dan Schulman is a big fan of digital currency.  Through two companies he owns, he’s solidly invested in bitcoin.  It’s not surprising, he stated in a recent presentation, that financial services is one of the least trusted business sectors:

“For two billion poor people, financial services are very expensive and incredibly time consuming – and costs them up to 10% of their disposable income. It’s ridiculous this still happens when we have modern technology – moving and managing money cheaply should be a right for all https://www.biznews.com/innovation/2016/02/01/bloomberg-view-bankings-rocky-future-as-china-uk-mull-official-bitcoin/.”

Courageous words – especially coming from the CEO who runs a business that helps ordinary people sidestep a great deal of check writing and, therefore, a great many banks! Some might accuse Schulman of being self-serving.  But one thing’s for sure.  He believes the way to move and manage money easily is through digital currency.

Schulman is garnering plenty of support in the financial community and government. Recently, the International Monetary Fund (IMF) has praised its benefits and suggested governments take a more “nuanced regulatory approach.”

So banks have jumped on board.  But so have governments.  According to a recent Bloomberg editorial, governments would find digital currency less expensive than printing paper money and minting coins.  They could be more precise with official indicators such as inflation and GDP.  And transactions that could be traced would help limit terrorist financing, fraud and money laundering.

Apparently when Dan Schulman (and just possibly the IMF) talk, governments listen.  Because The People’s Bank of China has announced it now intends to issue a digital currency.  And central banks in Ecuador, the Philippines, the UK and Canada are also entertaining the idea.

But you can be sure with banks, governments and digital currency investors all relentlessly standing behind digital currencies, bitcoin, the first among them, is here to stay – and prosper.