Since bitcoin’s popularity exploded a few years back, a number of financial services including internet-based payment systems such as PayPal seemed to be quite nervous about the eventual explosion of blockchain-based digital currencies. The main concern for these companies was the possibility of being rendered obsolete in the not-so-distant futures as cryptocurrencies continue to rise. However, this is yet to happen and the chances of such as occurrence have grown slimmer thanks to the recent woes of the global cryptocurrency market – the crypto market has continued to fall lower and lots of investors and digital currency holders have panicked and exited the space.
Despite the initial worries regarding crypto and the very stormy nature of the crypto market at the moment, PayPal appears to be one of the companies that have regained some confidence in as far as digital currencies are concerned. The company has recently been revealed to be one of the institutions that have started looking to digital currencies – these will be private ones unlike the ones that most enthusiasts are used to and the company is already using it as an incentive platform for its employees.
According to a recent report, PayPal has created its own internal cryptocurrency that is used by its employees to purchase goods and services within the payments service provider’s own offices. This is part of the company’s new set of in-house rewards system. In other words, PayPal is giving out tokens as rewards to employees in the company who any form of positive contribution to productivity in the office or those who contribute innovative ideas that will eventually help in the improvement of the quality of life of the employees. The PayPal token whose official name is yet to be revealed can be redeemed for such rewards as coffee with John Rainey, the PayPal CFO, and martial classes with Dan Schulman, the company’s chief executive.
Is This A Change of Heart?
Well, the launch of the internal cryptocurrency or token is a way of fostering the exchange of ideas, and participation between the employees of the company as well as innovation. Moreover, an internal website has been set up for the employees to access their private tokens and earn more by enrolling in learning programs. Naturally, the tokens are not tradable outside the system since they are literally worthless outside PayPal’s own blockchain.
PayPal, like money other payment service providers, has not been very welcoming to digital currencies primarily because of the volatility issues that cryptocurrencies are associated with. The launch of an internal cryptocurrency would raise hopes that PayPal is considering getting into crypto. Unfortunately, this is not the case. It is very unlikely that PayPal will be venturing into the mainstream crypto market anytime soon. That said, PayPal is definitely interested in the technology but this is not the sign crypto enthusiasts have been waiting for.