The giant fintech company, Paypal, accordingly with their CEO is planning to bolster utility of cryptocurrency in the coming years. The statement from the "Big Boss" of the payment processor firm was revealed in a new CNBC interview on Nov. 23, 2020.
The chief executive officer believes that the world is starting to accept and use more digital money and since the pandemic times arrived with COVID-19 being on centre of this, many people around the world aren't using paper money to pay for goods and services, opt-in to use more digital solutions and it's here where the usage of cryptocurrencies can be a much better solution to pay using the giant fintech services.
Accordingly to the same source, Paypal will bolster the utility of decentralized assets particularly Bitcoin, Bitcoin Cash, Ethereum and Litecoin, which are the assets for now the company will offer support as announced early in October when the firm joined the crypto market. Paypal have more than 26 million merchants around the globe and will allow users to purchase items on them using their crypto, this network of users are in more than 210 locations worldwide and are secured by more than 300M customers.
The Giant fintech will give the ability to use crypto to interact with their network of merchants, besides giving support to Hodl and buy digital decentralized assets, will allow this merchants to accept this form of payment and boost the adoption and acceptance of crypto worldwide, as stated by the CEO here:
“One of the things that we allowed is not just making it easy to buy, sell and hold cryptocurrencies, but very importantly, early next year, we’re going to allow cryptocurrencies to be a funding source for any transaction happening on all 28 million of our merchants. And that will significantly bolster the utility of cryptocurrencies.”
The payment processor company will handle all the crypto related business with the help of Paxos Brokerage, who have the necessary legal authority in the United States to deal with crypto. To refer that the service to buy and sell crypto using PayPal funds is already running on the US and next year, 2021, will be rolled to the whole world.
Since the announcement of Paypal to enter officially into crypto the market have been bullish about, and many coins starting from Bitcoin, Ethereum, Bitcoin Cash and Litecoin have gained substantial market value with Ethereum passing the $600 mark, which wasn't seen since 2018. Bitcoin and Bitcoin Cash also saw a great increase in price per unit, BCH negotiated around $344-350 and Bitcoin closing Tuesday with values of more than $19,400 per coin, prices that wasn't registered since 2017/2018 when the asset registered the All-time-high (ATH) of $19,666 in the end of 2017.
Paypal also since announced the recent move to crypto business have been buying Bitcoin in large scale, and bought 70% of all new mined Bitcoin in circulation and seems to buy even more than that, and the recent rise on the value of Bitcoin could be justified using that base, Paypal buys reduce the circulation of the asset on market and the demand still higher.
Paypal is a great player on the crypto market and many good things could come from that, the unique issue about this surge in adoption of cryptocurrencies on the company is the inability to withdraw the crypto bought on the platform, giving only the ability to spend Bitcoin, Bitcoin Cash, Ethereum and Litecoin, on their network of merchants, which somehow is good but not a complete use of crypto in a decentralized manner. Customers will be able to spend crypto using PayPal channels which is good, as the user funds can still top-up using crypto but bear in mind that only serve to use on their network of merchant and businesses.
It's always good before using the service offered by PayPal on crypto to read the FAQ about it, that gives a realistic perception about the service.
For the crypto space this integration is good and a victory, with involvement from PayPal, MicroStrategy, Cash App and more Billionaire firms the acceptance of Bitcoin and pairs open more gates to more companies, which will embrace and support crypto assets on their environment.
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Have a wonderful day 🙌.
