June 25, 2021

PayPal Plans to Become a Digital Wallet for Global CBDCs

PayPal CEO Dan Shulman believes his company can play a significant role in making central bank digital currencies (CBDC).

During a conversation with an investor in the company, Shulman said PayPal is preparing to become a "digital wallet for global CBDCs," according to The Block.

“PayPal can be a great way to distribute these CBDCs. We think that this will become the main focus of our new division in the future, ”Shulman said.

Shulman spoke about plans to launch a new cryptocurrency division last week.

However, most central banks are stillstill far from CBDC release. The head of the European Central Bank Christine Lagarde said it could take years to create a digital euro, and the US Federal Reserve is still in the process of exploring the possibility of launching a digital dollar.

Schulman added PayPal wants to drive wider adoption existing digital assets. He also said that the company is exploring the possibility of digitizing other assets through smart contracts and tokenization.

“This is an opportunity that comes every few decades ... and we can get involved,” Shulman said.

PayPal announced the launch of the crypto service last year in partnership with Paxos.