Digital currencies have come with so much influence that we cannot ignore. With the convenience of digital payments and cryptocurrencies in general, consumers are moving to digital currency in droves is inevitable.
According to PayPal CEO Dan Schulman, it is obvious that people are moving to digital payments and digital currencies. In his opinion, it is about time that central banks also start issuing digital currencies, and that will lead to even more utility.
Shulman said this when the company moved to adopt cryptocurrencies by integrating it into its platform. Through PayPal, clients will be able to buy, hold, and sell cryptocurrencies from their PayPal accounts. Clients will also be able to use digital currencies as a form of payment from its 26 million merchants in the network from early 2021.
The New York State Department of Financial Services (NYDFS) gave PayPal its first Bit license. In October, PayPal indicated that it is looking forward to acquiring some digital currency firms such as BitGo.
As of November 23rd, PayPal and Square’s Cash App move to buy cryptocurrency made the cryptocurrency to be bullish.
itBit, which is operated by Paxos, analyzed the digital currency exchange hat suggests PayPal and CashApp might have purchased all the newly issued bitcoin. iBit volume increased as soon as PayPal went live. Within a month, PayPal had already bought like 70% of the new BTC (Bitcoin) supply. From the report, when other cryptocurrencies join the bandwagon, there will be an imbalance in supply scarcity.
itBit experienced a 500% surge with the trading volume hitting 26.7 million as a mid-November. This was a great increase from $4.41 million in mid-October.
From the report, the Bitcoin rally is much more sustainable as compared to 2017 since there is an increased way of buying Bitcoin such as from PayPal and CashApp.
So far, Bitcoin has increased by over 155% since Jan 2020, with Ethereum increasing by over 330%.
PayPal supporting cryptocurrencies means a lot as it already has over 300 million active users. It already has a strong base as compared to Bitcoin, which has 100 million users that it took a long time to acquire. The merge speaks volumes about what is expected.
Cryptocurrencies have come a long way in their adoption, starting from facing legal issues with authorities. Some of the other reasons why there is an increased cryptocurrencies adoption include:
Smooth online transactions
With the increasing number of merchandizers accepting cryptocurrency, it is much easier to pay online using these digital assets. They are more secure as compared to traditional currencies since they are based on the blockchain, which is immutable.
Cryptocurrencies have been widely adopted in remittances. It is now easier to send money seamlessly in an affordable way. Since there is not much infrastructure involved, there are low overhead costs; hence low transaction costs making everything cheaper.
Facilitation currency exchange
Cryptocurrencies have created ease of exchange. Some use it as the main basis for forex exchange, and some use it as a basis to change to their currency of choice. That explains why some countries have introduced their own digital currency.
Facilitates cashless payments
The pandemic has rubbed on our faces how important being cashless is. Being cashless has many advantages, and that is why there are countries that are exploring the options of a digital currency for convenience. It is only a matter of time that most central banks will work on introducing their digital currencies.
Many consumers have gone past the phase of fear in adopting digital currencies. The trend is likely just to be upward. Governments are also more lenient as people get more understanding of digital currencies.