On 21 Oct 2020, PayPal announced its entry into the cryptocurrency market. It has launched a new service, enabling its customers to buy, hold and sell cryptocurrency directly from their PayPal account.
It has plans to increase the utility of cryptocurrency on its platform by making it available as a funding source for purchases at its 26 million merchants base, across the globe.
Dan Schulman, President and CEO, PayPal said, “The shift to digital forms of currencies is inevitable, bringing with it clear advantages in terms of financial inclusion and access; efficiency, speed and resilience of the payments system; and the ability for governments to disburse funds to citizens quickly. Our global reach, digital payments expertise, two-sided network, and rigorous security and compliance controls provide us with the opportunity, and the responsibility, to help facilitate the understanding, redemption and interoperability of these new instruments of exchange. 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.”
PayPal has been granted a first-of-its-kind Bit-license by the New York State Department Of Financial Services. To start with, PayPal is offering these services in Bitcoin, Ether, Bitcoin Cash and LiteCoin.
As part of its offerings, PayPal will also educate its customers on the use of cryptocurrency and the underlying technology – Blockchain. Starting 2021, PayPal customers will be able to buy items using cryptocurrency from its global base of 26 million merchants.
PayPal merchants will be protected from cryptocurrency volatility as the settlement will take place with fiat currency.
Currently, PayPal has more than 300 million active customers across the globe compared to BTC 187+ million.
This news is the second booster for the crypto market after the news of Corporates moving some of the treasury in bitcoin.
With this news, the BTC price went up to $13000/-. all-time high after June 2019.