Their next move could open the floodgates.
The digital payment company that allowed eBay to be a next-level company in the 90s is positioning itself as the linchpin that opens cryptocurrencies up to the mainstream population.
That's right: PayPal.
There are plenty of cryptocurrency zealots out there calling for the digital currency revolution. They throw shade at banks that charge exorbitant fees and offer measly "high-yield" interest rates of 0.5%. The benefits are there, but the technology is still out of reach for the masses.
People are starting to understand Bitcoin, Ethereum, and other currencies. They're starting to wrap their heads around DeFi and the advantages over traditional banking & finance.
But for most people, it's still out of reach without a techie friend.
Platform & infrastructure
PayPal has already taken strides to help drive the inevitable rise of cryptocurrency. They have the infrastructure and platform to make everyday payments work simply by leveraging their existing "pay using your PayPal balance" functionality. For more than a decade, you've been able to use a PayPal debit card to use your digital balance to buy groceries or a cup of coffee.
Even without their debit card, it doesn't matter. I don't know if you've been paying attention, but PayPal is increasingly everywhere. I pay for many of my subscription services like YouTube TV with PayPal, and it's my preferred way to pay at online stores like the Lego store and for food with DoorDash.
It seems conceivable that with the flip of a switch, funds could come from a crypto wallet instead of a credit card.
Peer-to-peer
I've been using PayPal since the 90s. My wife, though? I don't know if she even has a PayPal account. When she's out to eat with her friends, and it's time to split the bill, you know what she uses?
Venmo.
And who owns Venmo? PayPal.
One could argue that PayPal has a leg up on cryptocurrency in this regard simply because they've started with mainstream adoption and are working backward, versus crypto, which started with the technology and faces the challenge of gaining adoption.
The missing piece
We've established that PayPal is a power player in the digital payment and peer-to-peer spaces. Our closes non-techie friends are comfortable using Venmo. They know PayPal. They trust PayPal.
So what's missing? Easy banking and investing.
It's mind-boggling that I can convert my USD into non-volatile stablecoins and earn 8.6%-12.5% or more simply by keeping them with BlockFi or Celsius.
Imagine what happens if PayPal can offer those kinds of rates. Just deposit your money with PayPal, and you'll earn 16-25 TIMES more interest than with a traditional bank's high-yield savings account.
And guess what's happening? We're starting to see rumors of PayPal taking steps toward that. Cointelegraph and other sources have reported on rumors of PayPal acquiring the defi firm Curv, an established player in the very new and very crowded world of decentralized finance.
What happens next
PayPal is doing a masterful job of setting itself up for success. An acquisition of Curv and integration into their platform could lead to an explosion of cryptocurrency adoption.
They already have a complete, functional platform for processing digital payments. They already have partnerships with major credit card players. They already exist as a payment option in many of our favorite places. They've already established themselves as a leader in the peer-to-peer payment space. They already have the ability for users to buy cryptocurrencies.
The only thing that's missing is the people, and easy-to-use defi is the perfect carrot to bring them.
I'm looking for feedback! What do you think of PayPal's potential play to acquire Curv? Will this be the ticket for mainstream adoption of cryptocurrency? Is the world finally ready for that? Let me know what you think by leaving a comment below.
Feature image by Ben White on Unsplash
This story was originally published on This Crypto Life on March 4, 2021.
