Paypal Holdings Inc joined the cryptocurrency universe this Wednesday, and will allow the purchase, sale and storage of cryptocurrencies from its popular electronic payments network starting in 2021.
The joining of Paypal, one of the largest and most important electronic payment multinationals in the world, to the universe of cryptocurrencies, was something that the crypto community had expected for some time. A few months ago, this giant issued a letter addressed to the European Commission, which confirmed rumors that the multinational was studying the development of new technologies to enter this ecosystem, and that their union would help expose the benefits of cryptocurrencies, and digital assets to its millions of clients and users.
However, although Paypal confirmed its plans to accept cryptocurrencies, due to the importance they currently have, there was no defined date for the multinational to begin accepting payments in crypto assets. But now, several close sources they affirm which will be at the beginning of 2021 the year where this electronic payments giant begins to process payments with Bitcoin and other cryptocurrencies, and to allow users to buy and sell cryptocurrencies from its platform.
Paypal's integration plans into the digital world of cryptocurrencies will begin with the integration of the 26 million businesses that accept payments with this service, and that serve more than 346 million users with active accounts around the world.
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The new Paypal services
Paypal has partnered with asset operator Paxos to provide the new services. It also has a BitLicense, a conditional cryptocurrency license issued by the NYDFS, the Department of Financial Services of the State of New York, United States. Therefore, the services for buying and selling cryptocurrencies directly from the Paypal platform will be available in a few weeks for US citizens.
Likewise, according to the statement published in Reuters, the president and CEO of Paypal, Dan Schulman, assured in an interview that the multinational is working together with different central banks and financial entities to devise an effective and efficient way to promote the global use of cryptocurrencies, in addition to preparing its payment network for the implementation of these digital currencies. Schulman assured that Paypal can play a fundamental role within this ecosystem, and greatly drive the adoption of digital assets.
Likewise, the statement indicates that Paypal account holders in the United States will be able to buy, sell and hold their cryptocurrencies in the PayPal digital wallet. Although at the moment, the information that is handled is that the withdrawal or deposit of Bitcoin and other cryptocurrencies to other digital wallets is not allowed in the PayPal service, but only users will be able to buy their cryptocurrencies, and keep them in Paypal until decide to sell them, all directly from the payment platform and in its fiduciary equivalent.
On the other hand, the electronic payments multinational also announced its plans to expand its new cryptocurrency services to several countries around the world during the first half of 2021.
Support for various cryptocurrencies and service expansion
In the first instance, the cryptocurrencies that Paypal will accept in its new digital services are: Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH) y Litecoin (LTC); four of the most used and safest cryptocurrencies in the ecosystem. Likewise, several analysts affirm that it is possible that in the future the multinational will integrate new assets into its services.
Although the services that Paypal is announcing are nothing new within the crypto ecosystem, what is impressive is the number of users that this payment provider has, which manages nearly 346 million active accounts around the world. With this broad reach, Paypal is a potential ally to expand and massify the use of cryptocurrencies globally.
“Our global reach, digital payments expertise, bilateral network, and rigorous security and compliance controls give us the opportunity and responsibility to help facilitate the understanding, redemption, and interoperability of these new financial instruments.”
Analysts and experts argue that with this initiative Paypal will considerably increase the exposure of crypto assets to society, helping Bitcoin and other cryptocurrencies gain more ground and importance as digital payment systems. Since this news was released, the price of Bitcoin has been reacting positively, growing by 6% at press time.
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