PayPal Uses Blockchain Tokens for Employee Incentives
A recent report reveals that PayPal uses rudimentary blockchain-based tokens to reward its employees.
In an effort to stimulate its employees with new incentives for innovation and participation in certain events, PayPal has launched a blockchain-based token system as part of its corporate structure, Cheddar reports.
Employees can now access wallets using a site within the company. Tokens are earned by participating in programs with PayPal and coming up with new ideas for the company.
Although they can’t use the coins outside PayPal, they can trade them with each other. An employee wishing to spend the tokens on something could buy “experiences” like a morning run with the CFO or borrowing the head of investor relations’ dog for a day, according to director of innovation Michael Todasco.
“[It’s a] Venmo-like feed people can like and comment on and see all the activity going on within PayPal related to innovation,” Todasco said when describing the platform.
PayPal has been traditionally quiet about cryptocurrencies, save for one instance in which CEO Dan Schulman said that Bitcoin is not ideal for retailers.
“I think right now, and we’re seeing this maybe more than ever, the volatility of the cryptocurrency makes it actually unsuitable to be a real currency that retailers can accept,” he said.
Schulman didn’t seem opposed to cryptocurrencies as a concept, but explained that the low margins that retailers have to deal with make him hesitant to say that accepting Bitcoin would make any business sense for them.
Recent patents filed by PayPal indicate that the company is open nonetheless to exploring innovation in the cryptocurrency market. This recent incentive program for its employees solidifies the case even further.
As it stands right now, it’s not likely that the company will offer any cryptocurrency payment services at this point, but it seems to be preparing for the possibility that adoption levels may rise in the future to a point where it can’t ignore them.