The payments scion of Silicon Valley, PayPal, has expanded its business provisions to include the trading of cryptocurrency. Reuters reported that PayPal customers in the US would be able to buy, sell, or hold cryptocurrencies and crypto-assets in their PayPal e-wallets in the coming weeks.
Also, customers would get access to more than 20 million merchants affiliated to PayPal. Payments to these merchants could be made using cryptocurrencies, starting early 2021. The tech machinery necessary for this service will be made available with the help of Paxos Trust Company.
The company secured a first conditional cryptocurrency license from the New York State Department of Financial Services and is all set to allow the purchase and trading of various prominent cryptocurrencies like Bitcoin, Ethereum, and Litecoin.
The service will be available to PayPal account holders in the U.S. in the coming weeks and initially feature #Bitcoin, #Ethereum, #BitcoinCash and #Litecoin directly within the PayPal digital wallet.
— PayPal (@PayPal) October 21, 2020
The global payments giant also has plans to expand these services in few other countries in the next year. PayPal’s large customer base of almost 350 million active users is what sets it apart from other payments fintech companies like Robinhood or Square.
PayPal’s crypto trading initiative will also involve trading fiat money for cryptocurrencies. Reuters stated that “merchants will not receive payments in virtual coins”. However, this does not clarify whether merchants offering crypto assets will receive fiat money, or other merchants will receive fiat money.
PayPal also intends to be part of the global CBDC movement, where nations are trying to get their own digital currencies on track. Ultimately, CBDCs would be included in PayPal’s new crypto trading venture.
Investors flock as BTC rises to $12,700
The crypto market is abuzz with traders looking to invest in all cryptocurrencies. This has created a sharp surge in the values of prominent coins like Bitcoin (BTC), which has hit its highest value this year. At the time of writing, BTC was trading at US,702.
Undoubtedly, this bullish sentiment can be attributed to PayPal’s decision to enter the crypto market. A mega-corporation like PayPal entering the arena created ripples which resulted in a BTC pump. Other coins like Ethereum and Litecoin also have graphs going up after PayPal’s announcement.
