PayPal to Allow Users to Pay With Cryptocurrency Soon
PayPal has announced it is ready to get on the cryptocurrency train. The platform has revealed new features that will allow users to buy, sell, hold, and pay with cryptocurrency within their PayPal accounts.
As per the announcement, at first, it will support digital currencies like Bitcoin, Ethereum, Bitcoin Cash, and Litecoin.
Cryptocurrency on PayPal
The payments giant is among the largest financial services providers to enter the world of crypto, following its competitor Square, whose founder Jack Dorsey is a longtime advocate of Bitcoin and other cryptocurrencies.
Starting with early next year, PayPal’s 346 million customers will have the possibility to shop the network’s 26 million merchants with digital currency, which the platform will convert to fiat money for merchants to receive.
Although cryptocurrency’s volatility on the market has been a risk for shoppers and merchants in the past, PayPal considers its conversion services will lower that risk, as PayPal will be managing price fluctuations while merchants get their fiat currency. As per the company, this move will ‘significantly increase cryptocurrency’s utility.’
A Global Shift
The decision comes as central banks all over the world are also considering cryptocurrency, with seven major banks, along with the Federal Reserve and the European Central Bank, recently developing a framework for issuing world digital currencies, and the People’s Bank of China testing its newly-created digital currency.
A survey carried out by the Bank for International Settlements found that one in ten central banks expects to release its digital currencies within the next three years.
“The shift to digital forms of currencies is inevitable,” PayPal CEO Dan Schulman said in a statement. “We are eager to work with central banks and regulators around the world to offer our support, and to meaningfully contribute to shaping the role that digital currencies will play in the future of global finance and commerce.”
As per PayPal, customers will have the possibility to buy, sell, and hold cryptocurrency in their digital wallets in a few weeks. PayPal also said it plans to implement its cryptocurrency services to its P2P payments subsidiary, Venmo, by mid-2021.
Co-founder and CEO of Twitter and Square, Dorsey has been an advocate for Bitcoin since the early days. Having launched a crypto division of Square early this year (called Cash App - which helps newcomers buy Bitcoin), Dorsey is now making plans to lead the way to mass BTC adoption in Africa.
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.