The volatility of bitcoin makes it unsuitable for use as a real currency for retailers. This is the CEO of PayPal Holdings Inc. Dan Shulman said in an interview with TheStreet.
"Retail retailers have a very narrow margin, so using bitcoin jumping up and down by 15% for a couple of weeks can create a serious difference between profit and loss of money on every sale," Shulman said.
He also pointed out that to fix the cost to each seller working with bitcoin, it would be necessary to pay extra with each exchange of crypto currency for fiat money. This agrees with Chris Bendler, Director of the Stock Analytics Department at Buckingham Research Group.
"It's just an inefficient way of transferring value. This is an uncomfortable process for the consumer, and this is not a commercial process, "he said.
Proceeding from this, PayPal does not intend to support bitcoin as a means of payment on its site, at least until the widespread distribution of crypto currency.
At the same time, Dan Shulman did not rule out the use of distributed registry technology in most areas offered by the company: from real estate contracts to financial services.
"I do not think of blockade as a competitor for PayPal or for other financial services companies. I think of it as a technology that allows innovation to be introduced, "Shulman said.
Recall, in mid-August 2017 bitcoin for the first time bypassed PayPal market capitalization.