Financial officer (CFO) PayPal John Reini (John Rainey) in the transmission of Mad Money on CNBC explained why bitcoin and other cryptocurrencies is still not popular as a payment system.
PayPal was one of the first companies that started to accept the cryptocurrency as payment — support of bitcoin was created in 2014. However, very soon they had to abandon it.
«The volatility of cryptocurrency created and creates a threat to business sellers. If your product or service had a markup of 10% and you took payment in bitcoin, and the next day changing the cryptocurrencies to Fiat money, the rate fell by 15%, then you are in the red. That’s why most chose a more stable currency,» said Raina in an interview with Jim Cramer (Jim Cramer).
However, in the end, Raina said that if the future of cryptocurrency stabiliziruemost, PayPal must support them:
«You can have what consumers like, but if the sellers don’t accept it – it may not have a high value. Today we see a big interest in cryptocurrency from the companies who need to accept payments for their goods or services. But, if the situation change in the future – we have support».