Victor Ugochukwu · Dec 14, 2020 . 5min read
Paypal adds support for cryptocurrencies
PayPal is now one of the largest fintech companies to start supporting Bitcoin and other cryptocurrencies.
By Victor Ugochukwu · Oct 22, 2020 . 6min read
Mainstream payment giant PayPal confirms opening support for cryptocurrencies and digital assets. Reuters made this known in a Wednesday publication saying the fintech giant will start rolling out this service to US customers in the coming weeks. It recently acquired a conditional license from the New York Department of Financial Services (NYDFS).
With a conditional license, a new entrant into an industry can collaborate with an authorized licensee in a bid to eventually establish its own. And for PayPal’s case, it’s partnering with Paxos.
PayPal, which is a foremost payment processing company, has at least 346 million global customers. PayPal hopes that its decision to start supporting cryptocurrencies will at least help central banks and other institutions. Many have already expressed plans of their developing their digital assets in the wake of this current digital currency revolution. “We are working with central banks and thinking of all forms of digital currencies and how PayPal can play a role,” Dan Schulman, President and CEO of PayPal said in an interview with Reuters in his company’s latest move.
The company processed payments worth over $322 billion in Q2 for its 26 million merchants across 200 countries and regions. PayPal is coming on board as the latest mainstream payment giant is significant. Obviously, it’s due to the company’s vast reach as well as compliance reputation. Other significant players who have delved into the currency and digital space include Robinhood and Square. The latter recently invested 1% of its total asset in Bitcoin etc.
PayPal will extend this cryptocurrency support service to Venmo users and other countries before June next year.
PayPal’s support for cryptocurrencies already fuelling the run in Bitcoin’s recent price spike
Bitcoin price after a wobbly price movement in the $11k zone for weeks broke the resistance. The digital asset shot up to $12,200 within hours and has continued to rally close to $13,000. Crypto Twitter went agog with the news of PayPal supporting cryptocurrencies which may have also fuelled recent Bitcoin spike.
To conclude, Chamath Palihapitiya, a veteran Silicon Valley investor and a former executive at Facebook may be spot on in this. Being an early investor in Bitcoin, Chamath has once tweeted it was one of his best-ever investment decision. His take on this recent adoption move by PayPal is worth more than a nickel, especially to the banks who have had their revenues threatened due to innovation around payments and digital asset proliferation.
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