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PayPal Stock Surges as Leaner Approach and Strong Forecast Offset Crypto Concerns


PayPal Stock Surges as Leaner Approach and Strong Forecast Offset Crypto Concerns

In a significant market move, PayPal Holdings (PYPL.O) witnessed an increase of nearly $4 billion in its market value after announcing its commitment to becoming a “leaner” organization. This announcement resonated with investors, who were unfazed by the revelation of a subpoena from the U.S. Securities and Exchange Commission (SEC) related to its stablecoin.

The company’s stock closed nearly 7% higher at $55.06 on Thursday, driven by a robust full-year profit forecast that eased concerns about a potential spending slowdown.

PayPal’s new CEO, Alex Chriss, succinctly outlined the company’s approach, stating, “Simply put, our cost base remains too high.” He emphasized that PayPal would realign its resources to focus on its “most profitable growth priorities.”

The positive outlook provided by the company highlights the resilience of consumers’ financial health. Despite an uncertain economic climate, consumers continue to sustain their spending habits.

Analysts were impressed with Chriss’s vision for the company. J.P. Morgan analyst Tien-tsin Huang noted, “Chriss struck the right note and articulated well the challenges facing the company and described a sound framework for improving growth and profitability.” Similarly, brokerage William Blair expressed encouragement about management’s focus on profitable growth.

Meanwhile, the SEC’s subpoena indicates the regulator’s ongoing scrutiny of the cryptocurrency industry, despite a recent setback in a high-profile court case involving digital asset manager Grayscale Investments. PayPal has confirmed its cooperation with the SEC’s Enforcement Division, which has requested the production of relevant documents.

Stablecoins are a type of cryptocurrency with a value tied to a stable asset, designed to shield investors from the extreme price fluctuations often seen in the crypto market. In August, PayPal made history by becoming the first major financial technology firm to adopt digital currencies for payments and transfers, including the introduction of its own dollar-backed stablecoin.

In a separate development on Thursday, PayPal announced the appointment of Archie Deskus as its new chief technology officer, a move that follows the recent appointment of Jamie Miller as its new finance chief. These executive appointments signal the company’s commitment to navigating the evolving financial landscape and ensuring strong leadership in its key roles.

Will Facebook’s Libra Help Bring Cryptocurrency To The Masses?

When Facebook announced plans for a stablecoin called Libra, the reaction from the cryptocurrency world ranged somewhere between skeptical and cautiously optimistic.

But, regardless of any specific merits of Facebook’s version of a digital coin, the social-media giant’s move could help speed the adoption of cryptocurrency to a larger audience, says Kirill Bensonoff (, a serial entrepreneur and an expert in blockchain.

The biggest issue now is that most people are not familiar with crypto; they think it’s difficult to use, and they may not trust it,” Bensonoff says. “Facebook will put a digital wallet on many phones and computers, and sending payments with crypto will become commonplace.”

Facebook’s Libra is proposed as a stablecoin, which is a form of cryptocurrency. Using Libra, people would be able to buy things or send money to others while paying, at most, minor fees. Unlike other cryptocurrencies such as Bitcoin, the value of stablecoins is tied to an asset such as gold, the U.S. dollar, the Euro or other currencies.

Facebook won’t have complete control of Libra. It’s just part of a bigger group of partners that’s creating the stablecoin.

What might all this mean for the future of cryptocurrencies – and for the average person who still knows little about them? Bensonoff says a few things worth knowing about Libra in particular and stablecoins in general include:

-Bringing stability to cryptocurrency. As the name implies, the idea of stablecoins is to bring more stability – and more peace of mind for wary investors – to the world of cryptocurrency. “I don’t think Facebook will bring stability immediately,” Bensonoff says. “I believe it’s going to take a lot more in terms of mass adoption, but Libra could be a step in the right direction.”

-The SEC’s view. Regulators at the Securities and Exchange Commission have been eyeing stablecoins with the possibility that some of them could be classified as securities. “That could put stablecoins in the same category as stocks, subject to the registration, disclosures, and accreditation of investors that demands,” Bensonoff says.

-Will Libra replace PayPal? Maybe not, considering that PayPay is one of the founding members of Libra, Bensonoff says. “I think they will have some influence on the direction,” he says. “However, crypto in general is a threat to all existing payment processors, including PayPal. I believe PayPal is smart and will adopt and accept crypto payments, and they will figure out a way to monetize it. The downside for them is they won’t be able to charge nearly as much as they do now.”

“I believe Libra is going to have a positive impact in terms of awareness, adoption and interest in cryptocurrency from both businesses and consumers,” Bensonoff says. “But at the same time, with that could come more regulatory scrutiny.”

About Kirill Bensonoff

Kirill Bensonoff ( has over 20 years experience in entrepreneurship, technology and innovation as a founder, advisor and investor in over 30 companies. He’s the CEO of OpenLTV, which gives investors across the world access to passive income, collateralized by real estate, powered by blockchain. In the information technology and cloud services space, Kirill founded U.S. Web Hosting while still in college, was co-founder of in 2006, and launched Unigma in 2015. All three companies had a successful exit.

As an innovator in the blockchain and DLT space, Kirill launched the crypto startup Caviar in 2017 and has worked to build the blockchain community in Boston by hosting the Boston Blockchain, Fintech and Innovation Meetup. He is also the producer and host of The Exchange with KB podcast and leads the Blockchain + AI Rising syndicate. Kirill earned a B.S. degree from Connecticut State University, is a graduate of the EO Entrepreneurial Masters at MIT, and holds a number of technical certifications. He has been published or quoted in Inc., Hacker Noon, The Street, Forbes, Huffington Post, Bitcoin Magazine and Cointelegraph and many others.