PayPal chief executive Daniel Schulman believes there will be a “tremendous decline in the use of cash” within the next 10 years, according to an interview with Time Magazine.
Schulman says that all forms of payment will “collapse into a mobile phone” as digital currencies gain traction and come closer to being accepted in mainstream society.
“All form factors of payment will collapse into the mobile phone. Credit cards as a form factor will go away, and you will use your phone because a phone can add much more value than just tapping your credit card,” he said.
“And so when all of those things start to happen, then central banks need to rethink monetary policy as well, because you can’t just issue more paper money into the system because people aren’t using paper money.
“And so this is the advent of digital currencies.”
PayPal said it would enable the buying, selling and holding of cryptocurrencies in users’ PayPal wallets in October last year.
“Enabling cryptocurrencies to make purchases at businesses around the world is the next chapter in driving the ubiquity and mass acceptance of digital currencies,” Schulman added.
Digital currencies have garnered significant interest from international treasuries and international corporations alike after the rise of leading currencies like Bitcoin and Ethereum.
The rise in interest in cryptocurrencies has prompted chancellor Rishi Sunak to launch a new taskforce to explore the launch of a nation cryptocurrency, or ‘Britcoin’.
The ‘stablecoin’ would be underpinned by the same blockchain technology used by currencies like Bitcoin and Ethereum.