Bitcoin and Cryptocurrency may become “as popular as payments” in the future opined by CFO John Rainey in an interview with The Wall Street Journal earlier this year.
New conditions highlight PayPal’s limits
Now, in the midst of freezing new accounts scenarios to comply with regulatory requirements in some jurisdictions, one is more sceptical than ever before about the company, whose original job was to reduce the limits associated with payments and give consumers limitless freedom guarantee.
“PayPal’s initial vision was to prevent governments from doing exactly that, “said Messari CEO Dan McArdle on August 14, in response to PayPal’s admission that it had blocked access to customers from Turkey
This decision, made as part of the introduction of economic measures to stem the devaluation of the Turkish currency, resulted from the fact that PayPal needed “necessary permits” to service users in the country. A support staff member tweeted the following:
We have no choice but to suspend processing of payments in your area. We will continue to seek the necessary permits to resume PayPal services in Turkey in the future.
It was not long before answers followed the tweet , which emphasized that you should turn to Bitcoin for help elsewhere.
Bitcoin still volatile
PayPal has remained neutral on cryptocurrency since its Braintree spin-off began accepting Bitcoin in 2014. However, in the face of volatility, executives like Rainey continue to imply that traders would rather pay PayPal’s fees and face the risk of upheavals from regulatory changes rather than get angry with changing crypto-currency prices.
“The technology is really good,” Rainey told the WSJ.
But I think it will be years before we see the kind of ubiquity and acceptance that make them a form of currency which is used every day. PayPal has faced unforeseen regulatory hurdles both in Turkey and elsewhere in the past. The current status quo stands in striking contrast to the vision Peter Thiel, Co-founder of the company, announced to the press 18 months ago.
PayPal will give citizens, worldwide, more direct control over their currencies than ever before.