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Bitcoin Price Too Volatile for Merchants, Claims PayPal CFO | CCN

The bitcoin price is too volatile to make it a useful payment tool for merchants, PayPal CFO John Rainey claimed in a recent interview.

Bitcoin Price Too Volatile for Merchants
Rainey made this claim during a recent episode of “Mad Money,” explaining that merchant margins are too thin to make bitcoin a viable payment medium.

You have a “10 percent margin on a product that you sell and you accept bitcoin, for example, and the very next day it moves 15 percent, you’re now underwater on that transaction,” he said.

Admittedly, itcoin and cryptocurrency prices are a lot more volatile than their fiat counterparts. A 1% or 2% swing in forex is considered a major move, whereas a 15% bitcoin price movement is not extraordinary, although it has swung upwards just as quickly in recent years.

Rainey did go on to suggest that if merchant demand increased in the future, they would look at their bitcoin policy again.

When talking about the possibility of accepting crypto in the future, Rainey went on to say:

“You could have something that appeals to consumers, but if merchants don’t accept it, it’s of little value. Right now, we don’t see a lot of interest from our merchants. But if it’s something that stabilizes in the future and is a better currency, then we’ll certainly support that.”

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Bitcoin Price Too Volatile for Merchants, Claims PayPal CFO.

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