PayPal’s Entry to Crypto: A Big Step Towards Wider Adoption
Key Takeaways:
- PayPal paves the way for large-scale crypto adoption
- PayPal announces the acquisition of a crypto custody firm
Paving the Way for Greater Adoption
In December last year, PayPal announced its plans to start offering support for cryptocurrencies. According to statements from the company, they will introduce support for Bitcoin and other cryptocurrencies sometime in 2021. The company plans to allow customers to use digital coins as a funding source for online transactions, similar to using a debit card or a bank account.
PayPal boasts a user base of over 350 million subscribers, making it one of the largest digital wallet providers worldwide. Until now, PayPal only provided a service whereby users could transfer funds in and out of cryptocurrency platforms without the option to store or trade cryptos directly on its native platform. With this step, PayPal will make it possible for millions of users around the world to trade and hold cryptocurrencies as well as to make payments with them. Since PayPal’s announcement to launch cryptos on its platform, several other companies have stated they will also embrace digital assets. Some of these companies include big names like Tesla, Mastercard, and Bank of New York Mellon Corp.
Digital Currency & PayPal, the Perfect Match
“The shift to digital forms of currencies is inevitable,” said Dan Schulman, president and chief executive of PayPal, “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” he stated. “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.” Mr. Schulman said in support of the decision by PayPal.
So far, the payment processing company has not yet announced the launch of the service. However, they remain on track and continue to build up expectations. A week ago, PayPal confirmed it had acquired a digital asset security firm called Curv. An Israeli security-focused startup, Curv offers a cloud-based infrastructure for digital asset security.
“The acquisition of Curv is part of our effort to invest in the talent and technology to realize our vision for a more inclusive financial system,” said Jose Fernandez da Ponte, vice president of Global Business Development and the head of Blockchain, crypto, and digital currencies at PayPal.