CEO of PayPal: bitcoin is not profitable to retailers

The volatility of bitcoin makes it unprofitable to use retailers, said Dan Shulman — CEO of PayPal Holdings.

«Retailers have a very narrow margin, so the use of bitcoin, the price of which constantly jumps up and down by 15% within a couple of weeks creates a significant difference between profit and loss on each sale,» he said.

This means that every retailer that accepts bitcoin, for example, Overstock.com (OSTK), should offset the risks at each exchange cryptocurrencies for Fiat money.

A similar opinion was expressed by the Director of the division of stock analysts at Buckingham Research Group Chris Bandler: «It’s just an inefficient way of transmitting values, he said. Is inconvenient for the consumer.»

According to Shulman, given this, PayPal intends to support bitcoin as means of payment on its platform — at least until the «consumers won’t use it regularly».

However, he approved the application of the technology of the blockchain in most areas of the company: from contracts to real estate to financial services:

«I don’t think about the blockchain as a competitor to PayPal or other financial companies, said Shulman. Blockchain is a technology that allows you to innovate».

   

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