The long-expected mainstream adoption of Bitcoin and other cryptocurrencies is slowly coming to reality. Today, leading online payment processor PayPal officially ventured into the cryptocurrency market. By next year, the company intends to fully enable cryptocurrency buying, selling, and shopping for its millions of customers. This news is a bullish development for the digital currency industry.
Notwithstanding, there are other traditional payment networks that facilitate cryptocurrency-related services, like Square Inc.
Crypto Adoption is Getting Stronger
Reuters reported the development on Wednesday, noting that PayPal partners with Paxos Trust Company to enable cryptocurrency services.
The payment giant notes in the statement that only four popularly-traded cryptocurrencies are supported for the onset. The digital currencies include Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH), and Litecoin (LTC). The development is part of PayPal’s effort to encourage broader adoption of crypto assetss, according to the president, Dan Schulman.
The cryptocurrency service rolls out to US customers first, according to the report. The company mentions that US customers should expect to start buying, selling, and holding cryptocurrencies from their wallets in the coming weeks. The services roll out for users in the other supported countries within the first half of 2021. Additionally, the company intends to expand the service to Venmo by some point in 2021.
In addition to all of the above, account holders can start shopping with supported digital currencies by next year. Notably, the company has up to 26 million merchants available on its network. They can all accept digital currency payments once the feature rolls out.
PayPal Joins the Crypto Market
Besides encountering the use of crypto, PayPal aims to prepare its network for other digital currencies like CBDC. “We are working with central banks and thinking of all forms of digital currencies and how PayPal can play a role.” Schulman, who’s also the company Chief Executive, explained.
The development today is bullish for the cryptocurrency industry, due to the prominence of PayPal in the payment industry. Reportedly, the company boasts of over 340 million active customers around the globe. The payment company handled about $222 billion in just the second quarter of the year. However, it is not the first traditional digital payment company offering cryptocurrency services.
CoinCorner CEO Danny Scott states:
“The news hasn’t really come as a surprise to the industry. One of PayPal’s competitors in the US, Square, had seen revenue of $306 million in Q1 2020 surpassing its fiat revenue stream by around $100 million.”
The likes of Robinhood and Square Inc allow buying and selling of cryptocurrencies. These companies provide completely different business models, however. Broader access to cryptocurrencies will prove beneficial to he industry as a whole.