PayPal CEO Dan Schulman, in an interview with Fortune, shared that the decision to quit the Facebook-led Libra Association was based on the belief that the company might be able to achieve its end goal – greater financial inclusion – if it concentrated on its own roadmap.
In October, PayPal became the first company to walk away from Libra Association, comprised of 28 members with a shared goal to build the cryptocurrency Libra in a Facebook-led project.
Despite rumors that the decision was dictated by regulators, Schulman highlighted that the regulatory scrutiny was not “what spooked” the company and lead to walking away.
The PayPal CEO shared that the decision was made after careful assessment of the Association’s roadmap and their own roadmap, after which PayPal arrived at the conclusion that it would “be able to advance financial inclusion faster” if it concentrated financially on its own plans.
Schulman highlighted that at first, the head of Libra Association David Marcus’ pitch on financial inclusion impressed the company, and that there is still a chance that the companies will find a joint ground to work together again in the future.
In the meantime, PayPal is developing its own blockchain project, the details of which Schulman refused to reveal just yet, since “some of this is competitive.” Schulman also implied that the company is planning a next acquisition to enter the blockchain arena.
Schulman also shared that he sees “a lot of promise” in blockchain technology and personally owns bitcoins, and only bitcoins.
Yet, for merchants at the current state of the market, in his opinion, blockchain technology brings no reduction in transaction costs, given high volatility and profit-eating conversion fees.
According to the PayPal CEO, instead the company believes that “a lot of the neat stuff that can happen on blockchain is around identity,” which might be a clue to the company’s still-secret blockchain project.