The American entrepreneur and CEO of MicroStrategy, Michael Saylor, vetoed the recent encrypted payment method introduced by PayPal, highlighting the main imperfections.
Taking Twitter into consideration, the American establishment executive MicroStrategy suggested a more favorable approach to financing equity investments and payment options without the apparent shortcomings in PayPal's method; defects such as additional costs resulting from additional taxes and having to sell their digital asset [because users' cryptocurrency would first be converted into fiat before payment can be completed].
As simple as the conversion is, PayPal did note that fees will be charged.
Saylor, proposing a better approach, tweeted: "The ideal mobile wallet will eventually allow you to pay traders in USD / EUR backed by a low-interest line of credit backed by your BTC assets."
Many agree with him
His idea seemed to have caught the attention of the public and most people reacted favorably as noted in the comments within the thread.
Some noteworthy comments came from Kraken's manager, Dan Held, who replied: "Nobody wants to sell their Bitcoin"; The Blockstack co-founder noted, "Yes, Bitcoin is for settlement and collateral, not for sale."
Samson Mow, Blockstream's Chief Strategy Officer, replying to Saylor, tweeted: "We cooperate on this."
Now, while we can't yet imagine a future where this will materialize as no company has officially decided to adopt it, the crypto community is likely to eventually like it and put PayPal on its toes if other competitors in the field jump on the bandwagon.
PayPal recently announced that it will now allow users to "checkout with Crypto”Among millions of its merchants. The digital assets that can be considered as possible payment options are Bitcoin, Ether, Litecoin and Bitcoin Cash.
Here's how it works
Basically, when a user wants to make a payment to any merchant connected to PayPal, they will see the option to pay with Crypto. But before the payment is completed, a taxable cryptocurrency to fiat conversion will be made. Hence, the traders will receive fiat.
PayPal also pointed out that cryptocurrencies owned cannot be directly withdrawn from personal wallets or sent to friends.
In addition to Michael Saylor, PayPal's move has been met with objections from most of the crypto community and this is because many people don't want to sell their digital assets.
PayPal wouldn't be the only payment platform to support the use of cryptocurrency as another payment gateway. Additionally, PayPal's competitor (Square) already added support for Bitcoin on its Cash App two years ago, and so far, even with adequate policies.
The payment platform has not made any comment on this shortcoming highlighted by Michael Saylor and a host of other investors, and whether or not they will improve remains to be seen.
