PayPal and Venmo will provide users with a cryptocurrency storage service through some built-in wallet function, and allow users to buy and sell cryptocurrencies directly on PayPal and Venmo.As an international payment company, Paypal has at least 300 million users worldwide. PayPal is expected to cooperate with multiple exchanges to obtain liquidity.
"PayPal's cryptocurrency buying and selling service is expected to be launched in the next three months (or even earlier)."
Although the official did not state, but according to the earlier information, we can find that paypal and coinbase are inextricably linked. These financial platforms with government background will have huge channels of capital flow into the currency circle once they open their interfaces. Why did paypal choose to open this direct channel for fiat and cryptocurrency? The driving force behind it must be the first stick to fight for the digital dollar.
From the perspective of the times, the United States has too many solid physical infrastructures, bridges, tunnels, modern airports, and other complete public transportation systems, but this is the light of the 20th century. Now, it is the 21st century. Many US financial market infrastructures, even financial regulatory structures, are outdated.
Today, the world is entering a new digital age. The first wave of the Internet is the information Internet, and the next wave is the digital wave, that is, the valuable Internet of Things. We experienced it early in the CFTC, and even introduced some of the world’s major commodities before we started using Bitcoin futures. The blockchain distribution system then uses Bitcoin as a commodity, and ultimately supervises the issuance of Bitcoin futures and the introduction of institutional funds.
We do see this new wave of blockchain and see the potential to present all valuable things in the form of tokens, digital forms, decentralized forms, and in some cases even programmable forms.
In the United States, it is the digital dollar, and the conflict between these outdated systems and the new wave of digitization is more important than the original dollar currency.
Most of the world's valuables are priced in dollars on the international market, whether they are agricultural products such as corn, wheat, soybeans, cotton, whether they are precious metals, whether they are industrial metals, whether they are energy products. The world's most important contracts and debt instruments are denominated in dollars.
When all these assets become tokenized digital, how long can the dollar remain the world's reserve currency ? Of course, people around the world see this opportunity and are taking swift steps to explore this new wave of blockchain. And paypal fired the first shot.
I think it is REALLY interesting move that PayPal and Venmo are doing and could potentially be great. But it depends on how much red tape users have to go through and whether they will be able to both send and receive crypto.