An application for a new technology will be designed by paypal to hasten up its cryptos payment system.
Despite the criticisms leveled by PayPal CEO John Rainey on crypto currency, is not enough to stop the online money transfer giant from filing an application with the US Patent and Trademark Office for a new technology aimed at enhancing its digital currency payment services.
PayPal boast about its Expedited Virtual Currency Transaction System as a solution to reduce the length of time it takes to transfer cryptos payments. It apparently speeds up the process through the exchange of the private keys of transactions.
“First user secondary wallets are created that each include a respective first user secondary wallet private key, and a respective virtual currency transaction is performed using the first user primary wallet private key to transfer predefined amounts of the virtual currency from the first user primary wallet to each of the first user secondary wallets such that first user secondary wallets are provided with different predefined amounts of the virtual currency.”
PayPal made it known that private keys are linked to temporary wallets which contain the payment amount. By exchanging the keys, the system eliminates the need for digital currency payments to be processed directly on the blockchain before confirmation of the payment.
PayPal’s new virtual currency transaction system clashes with the sentiment articulated by Rainey in an interview two weeks ago, when he expressed doubts over Bitcoin replacing fiat currency as a payment method.
Rainey was quoted as saying:
“Given the unpredictability of Bitcoin right now, it’s not a reliable currency for transactions because if you’re a merchant and you have a 10% profit margin, and you accept Bitcoin, and the next day Bitcoin drops 15%, you are now underwater on that transaction.”
Rainey claimed the Venmo payment platform was enjoying more acceptance from Millennial consumers because of its social media features and its ability to share purchases.
Bill Clerico, CEO of JP Morgan’s payment arm WePay, said there were too few requests from clients to consider support for transactions using cryptos.
According to him financial market seems not to identify the fascinating part of crptocurrency