Recently, we have seen a rise in the number of companies adopting crypto in their platform. Paypal, a California-based company is another addition to the roster of companies adopting cryptocurrency. On Wednesday, it announced that it will allow its customers to store bitcoin and other digital currencies in their wallets.
Paypal claims that it has around 22 million active merchants and 305 million active consumer accounts. This makes Paypal the biggest U.S. company to give access to its customers to cryptocurrencies. It will allow the use of Bitcoin alongside Ethereum, Litecoin, and Bitcoin Cash. In a statement made by Dan Schulman, president, and CEO of Paypal, he stated :
“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 will be working with Paxos, a crypto provider. The company is a pioneer in digital assets and offers years of expertise operating itBit, a leading regulated assets exchange built for international traders. It is regulated by the New York State Department of Financial Services.
Cryptocurrency as Payment in Paypal
Using crypto as a payment method in Paypal, the merchant will not get paid with digital currency. Instead, it will be converted to the applicable national currency. They will be paid the corresponding amount of the product or service in dollar or pound. But the service will be made available until early 2021.
Some have expressed confusion over the move but this is not the first time that Paypal has ventured into adopting cryptocurrency. It was one of the members of Libra Association, a 28-member non-profit organization formed in June 2019. The organization is behind the creation of Libra, a digital asset created by Facebook and powered by a new Facebook-created version of blockchain. But it has decided to withdraw its support due to several concerns, one of which is how will the platform combat money laundering activity.
With the price of Bitcoin soaring high for the past few days, the recent development will definitely have a major impact on its price. With its current price at $12,954, are we going to see the realization of its $20,000 mark in the next few days? Even the series of controversies in major exchanges did not stop the bitcoin from being bullish. Bitcoin only has a total maximum supply of 21 million. As of to date, we already have around 18.5 million supply in the market. We are just 2.5M away before it reaches its total cap. Paypal has a total number of active users around 327M. With the limited supply of bitcoin versus the increasing number of buyers, will it become a premium crypto investment? This makes things exciting in the crypto market. Let’s all watch and see how things will unfold.