NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

Bitcoin Integration With PayPal Being 'Actively Considered' Says eBay CEO

Published 05/15/2014, 10:20 AM
Updated 05/15/2014, 03:45 PM
Bitcoin Integration With PayPal Being 'Actively Considered' Says eBay CEO
BTC/USD
-
EBAY
-

By IBTimes Staff Reporter - John Donahoe, CEO of ecommerce giant eBay Inc (NASDAQ:EBAY), said he is actively considering an integration of popular digital currency Bitcoin (BTC-eUSD) with the company's payment processing service PayPal.

In a Q&A session at the company's annual shareholder meeting on 13 May, Donahoe said bitcoin is "a new, exciting and emerging technology" with lot of potential.

© Reuters. Warsaw, PolandAn eBay logo is projected onto white boxes in this illustration picture taken in Warsaw, January 21, 2014. eBay the world's second largest Internet retailer expected to post a 16% profit increase in its fourth quarter January 22, 2014. Picture taken January 21.

"We think bitcoin will play a very important role in the future. Exactly how that plays out, and how we can best take advantage of it and enable it with PayPal, that's something we're actively considering. It's on our radar screen."

This is not the first time Donahoe has spoken about his positive view of bitcoin.

In an interview with Bloomberg in February, he said that multiple digital currencies can be integrated into PayPal and are not posing a threat to his business.

Nothing holding us back

"There is nothing holding PayPal back from pursuing digital payments today, as part of eBay. In fact PayPal is pursuing digital payments and is the leading digital payments alternative in many different environments," Donahoe said.

"You can use digital currencies in the PayPal digital wallet, that's in fact what PayPal is doing – is building a digital wallet that can take multiple types of currency."

Last month eBay launched a virtual currency section of its US website, allowing users buy andsell digital currencies, as well as mining contracts and mining equipment.

In the UK, bitcoin owners would be able to list on the site's classifieds section, allowing the buying and selling of the cryptocurrency. Deals in classified ad formats mean actual transactions of bitcoins would take place outside of eBay.

EBay is still not accepting bitcoin or other digital currencies for payments. Its payment processing unit PayPal is facing stiff competition from bitcoin.

In a filing with the US Securities and Exchanges Commission (SEC), eBay earlier regarded bitcoin as a "potential competitor" to PayPal.

While PayPal charges a 2-3% fee for processing transactions, payments using bitcoin could be done with negligible fees, as they can be transferred without going through banks or clearing houses.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.