TL;DR Breakdown
- PayPal CEO wants US to use digital wallets to disburse stimulus payments
- PayPal may be working on a digital wallet
- Schulman lauds CBDC idea
Dan Schulman, Paypal CEO (Chief Executive Officer), has advised the United States government to look into using digital wallets for disbursing stimulus payments.
There has been a persistent debate in the country if there is any better way to distribute stimulus payments as the US tries to hand out pandemic relief to citizens. There have been too many issues with paper checks and other outdated technology used to disburse payment.
PayPal CEO on Wednesday proposed using digital wallets to streamline these payments, noting that it would be more efficient and reduce fees for the poorest recipients.
He highlighted that instead of sending out stimulus checks, money should be deposited directly to the digital wallet where it is instantaneously received without any need to go to a check cash-in location and exchange that and get charged for that exchange.
PayPal CEO excited about CBDC
The Paypal CEO also lauded the push by governments to adopt central-bank-issued digital currency as it could be delivered through digital wallets, which he notes is already in use in China.
In the US, a massive coordinated effort to introduce digital wallets is all that is required in the country as millions of unbanked residents exist in the country. Dan Schulman opines that using digital wallets would be cheaper for both the federal and state governments as well as for individuals.
The PayPal CEO also called out the archaic system both rich and poor Americans rely on to move money between banks.
It is worth noting that Schulman is not the first to raise concerns over banking in the US, as many in the cryptocurrency community have long pointed out how blockchain-based money transfers are superior to the traditional system.
Schulman’s proposal indicates that Paypal may be interested in developing digital wallet technology as Square, Coinbase and Robinhood are also creating a digital currency.
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