In a world where cutting-edge technological advancements happen every minute, no one wants to be left behind. Failing to change with the times can result in stagnation while adapting quickly can put you ahead of the game.
Today, global payment systems company PayPal leads the mainstream adoption of cryptocurrency as they announce that you can now use PayPal with Bitcoin and Ethereum among other digital assets.
PayPal steps up in crypto adoption
With the coronavirus situation still worsening for some countries, more and more people are looking for alternative financial services every day. Easy, flexible and entirely digital, PayPal is one of the biggest payment solution companies that lets you send and receive money straight from your phone. Connecting merchants and individuals, this service is responsible for millions of transactions every day.
In today’s financial landscape, digital forms of currencies are the next big thing. Utilizing the services they offer brings massive improvement and efficiency in the industry. PayPal recognizes this as they announced last October 21, 2020, that cryptocurrency services will now be available on their mobile application.
In a press release published last October 21, PayPal announced that its customers can buy, sell and hold Bitcoin and other cryptocurrencies using their online wallets. With millions of users in their network, this massive shift brings Bitcoin and other cryptocurrencies to the limelight. People won’t need to use crypto exchange sites just to buy or invest in Bitcoin.
Though these services are still exclusive to American users, the firm states that international customers will soon be able to use the same solutions. By early 2021, PayPal plans to widen their reach and allow international clients to use their new crypto services.
By the first quarter of 2021, customers will also be able to shop with 26 million merchants within the PayPal network using crypto. PayPal connects merchants and customers with its streamlined digital payment services. With the future integration of crypto in their network, this opens the door for mainstream use of Bitcoin and cryptocurrencies as an everyday means of payment.
The payment solutions company received the go ahead from the New York State Department of Financial Services after acquiring the first conditional cryptocurrency license from the department called ‘BitLicense’. This allows them to legally conduct operations with digital currencies in New York.
To broaden their reach in the crypto world, PayPal has partnered with stablecoin operator Paxos Trust Company to run their crypto services. As of now, only four cryptocurrencies can be bought from the app, namely Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BTCH) and Litecoin (LTC).
Welcoming crypto and more with open arms
PayPal’s Chief Executive Director Dan Schulman shows optimistic views towards cryptocurrencies, saying that shifting to digital forms of money is inevitable because of the overwhelming advantages they bring to the financial industry. He hopes that PayPal’s monumental move to join the crypto market will bring forth a faster adoption rate and encourage the widespread use of virtual coins in making everyday transactions.
This step is only the beginning of PayPal’s direction towards accepting digital assets. Schulman further adds in a report that their groundbreaking service ‘prepares the network for new digital currencies that may be developed by central banks and corporations.’ Not only is he supportive of cryptocurrencies, but he’s also bullish towards other forms such as digital currencies from digital banks.
Though these services may not be available yet on a global standpoint, this optimistic notion sends a clear message to the crypto world that PayPal is building a gateway that leads straight to the public.
Additionally, PayPal recognizes the influence they have in the financial industry and plans to utilize their services to bring easier and streamlined financial services to a wider audience. ‘We are working with central banks and thinking of all forms of digital currencies and how PayPal can play a role,’ added Schulman in a press release. He also stated plans to expand their crypto services to their digital wallet Venmo and other counties in the first half of 2021.
The wait is over—PayPal’s crypto services are here
PayPal officially launched its crypto services on November 12, 2020, allowing their account-holders in the US to buy, hold and sell cryptocurrency directly using their PayPal application. The public’s heavy initial demand drove the firm to increase its weekly crypto purchase limit from the initially announced $10k per week to $20k.
As of now, PayPal users can only buy, hold and sell crypto using their online wallet. You won’t be able to transfer crypto funds to your family and friends yet or shop using your digital assets. These services, for now, are also limited to their American user base.
Despite the current limitations, instantaneous transfer services that allow you to use crypto in shopping and sending funds are already under construction. International customers won’t have to wait long to enjoy these services since PayPal said it will extend their crypto platform to other countries early next year.
The global effect
Just after PayPal’s announcement of crypto adoption in October, Bitcoin’s price climbed past US$13,000 from nearly US$12,000, increasing more than US$950 in less than 24 hours. After all, it was a historic event for crypto enthusiasts all over the net and it’s common for the public to invest in assets favoured by big institutions.
With PayPal’s network reaching almost 400 million all over the world, offering cryptocurrencies in their roster of services will drive mainstream adoption faster. Now, people won’t have to create an account on crypto exchange sites just to invest in Bitcoin. They can do all these and more with their PayPal application on their mobile devices.
As long as more institutions are investing in Bitcoin and other cryptocurrencies, advancement and continued adoption are on the horizon. It won’t take long before we all witness Bitcoin take the centre stage and usher in a new era of financial stability.
Words by: Leann Padilla