PayPal announced to offer the purchase, sales and the custody of and for cryptocurrencies within the next weeks in the USA.
At the beginning of 2021, PayPal plans to integrate payments with cryptocurrencies and wants to expand the service into other countries.
The step of PayPal could induce also other payment service providers and banks to follow the adoption and promote the acceptance of cryptocurrencies.
The Bitcoin price reached a high of around $13,200 yesterday, a level that has not been traded since July 2019. This increase followed the news from payment service provider PayPal that it will soon integrate transactions with cryptocurrencies. The first currencies used are expected to be Bitcoin, Ethereum, Litecoin and Bitcoin Cash.
PayPal integrates cryptocurrencies and wants to process payments via Bitcoin
After its sensational Rallye Bitcoin is meanwhile on place 21 of a list of the Top 100 shares, funds and cryptocurrencies after market capitalization. Thus it even overtook PayPal, to which the company probably contributed itself.
The announcement of PayPal for the integration of cryptocurrencies concerns for the time being the USA. The new service should start within the next few weeks. It should be possible to buy, sell and store cryptocurrencies. From the beginning of 2021 it should be possible to pay via PayPal with Bitcoin and other currencies. Furthermore the implementation in further countries is also aimed at.
Already last year PayPal was involved in Facebook’s Libra project, but later dropped out. The reason given by PayPal was to concentrate on its own business. The company wants to promote the worldwide use and acceptance of cryptocurrencies through its offer. CEO-Dan Schulman says according to a press release:
„We are working with central banks and thinking of all forms of digital currencies and how PayPal can play a role.”
New era for the crypto market?
With the integration of PayPal about 26 million merchants worldwide could be paid via cryptocurrencies. Also the banking world, which is mostly sceptical about the crypto world, could start to rethink more as a consequence. With 325 million active users world-wide the company has nevertheless a certain influence.
If customers can pay over PayPal e.g. in Bitcoin, a fast and simple completion is possible for the users. So also the acceptance could grow with those, which do not have any experiences with cryptocurrencies so far.
In addition, the general confidence into the crypto market could grow strongly. At present individual merchants accept for example Bitcoin as means of payment, but the acceptance of the mass is missing. The step of PayPal could also pull other payment service providers as well as banks and credit card companies along.
Since PayPal also used to work on the Facebook-Coin Libra, the plan for an own coin is not unrealistic. CoinShares CEO Meltem Demiror assumes that the company also wants to become active itself:
„And eventually I think this is paving the way for PayPal to launch its own crypto … I wouldn’t be surprised if, in the next six to twelve months, we see PayPal launching its own digital currency similar to digital dollars that we see in many payments companies.”
The adoption of cryptocurrencies by large payment companies like PayPal could well be a signpost for the future of the entire crypto market.