PayPal CTO: Crypto more of an asset play than a currency

Consumers need to see an advantage in using cryptocurrencies if they are to take off in a major way, according to PayPal’s Chief Technical Officer.

“What’s happened with crypto is in many cases it’s become a little more of an asset play than a currency,” Sri Shivananda - an eBay veteran who has been in his role at PayPal since 2016 - said at the Economic Times (ET) Global Business Summit.

“The main thing to keep in mind in this business is to follow consumers. If consumers start to feel like there’s some leverage that they get through cryptocurrencies, everything else will automatically fall in line.”

Libra Association

Last year, PayPal pulled out of the Libra Association that is looking to launch Facebook's digital currency Libra.

It did not specify what had prompted the decision, stating that it "[remained] supportive of Libra's aspirations" but would now focus on its own core businesses. PayPal was one of the original members of the Libra Association, alongside the likes of Visa and Uber.

There has been a huge backlash against the project, with regulators around the world expressing concerns about privacy and Facebook’s growing reach.

In a statement, Libra Association said it was aware that attempts to "reconfigure the financial system" would be hard. "Commitment to that mission is more important to us than anything else," it added. "We're better off knowing about this lack of commitment now."