Clever. Raise regulations and make it impossible to be a financial service company, they go bankrupts, and voila we need CBDC
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More critical for PayPal at this juncture will be its inability as a payments company to access the central bank lender-of-last-resort backstop. That means if the group is genuinely facing challenges meeting transfer and redemption requests, it will only be able to turn to wholesale liquidity markets to make up the difference. The degree to which customer balances are locked up in harder-to-liquidate securities or bonds will largely determine its success here. Frustratingly for PayPal, in the current illiquid bond market, there’s a good chance that selling these quickly and without a loss could be challenging. The alternative path for PayPal will be to use these securities as collateral for temporary loans. But the expense here is potentially open-ended if there are no obliging counterparts. That may (or may not) be why the company is currently restricting transfers.
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one can always hope...
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Paypal is owned by eBay. While eBay isn't exactly the shining star it once was... payPal is not going bankrupt anytime soon. Plus Venmo is very profitable for them.
All around shitty companies, but they aren't going anywhere soon.
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