PayPal co-founder, Peter Thiel has shown immense love for the world of Blockchain, having previously called Bitcoin “digital gold” and further claimed that “It’s sort of hedge of sorts against the whole world falling apart.”
However, his company’s CEO Dan Schulman does not feel the same way about crypto technology. The CEO has time and time again failed to join the crypto bandwagon and even extended his disbelief by stating that to him, crypto was never a real currency,
“I have always thought that crypto was more of a reward mechanism for implementing blockchain, as opposed to really a currency.”
He further expressed this view on Wednesday at the 2019 World Economic Forum in Switzerland where in an interview he made this statement to CNBC, “We’re not seeing many retailers at all accept any of the cryptocurrencies.” He added, “But I think the underlying technology is interesting.”
— Squawk Box (@SquawkCNBC) January 23, 2019
He also stated that bitcoin’s unreliable price swings were one of the main reasons why Schulman refused to accept cryptocurrencies as an efficient alternative to traditional currencies.
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.
In an interview to The Street early in 2018 Schulman said, “The volatility of [bitcoin] makes it actually unsuitable to be a real currency that retailers can accept.”
Schulman is not alone in the PayPal world to voice this particular viewpoint. In fact he shares this idea with his predecessor, Bill Harris, who in 2018 claimed that Bitcoin was “worthless” and even called it a “cult”. In a statement to CNBC on August 15, 2018, Harris said,
“The cult of bitcoin make many claims: that it’s instant, free, scalable, efficient, secure, globally accepted and useful. It is none of those things.”