PayPal to Approve Transactions via Bitcoin and Cryptocurrency

PayPal has just made a historical move by approving bitcoin transactions. Going forward, its customers will be able to purchase and sell virtual currencies while using PayPal accounts.

Virtual currency can be utilized for the procurement of goods and services from 26m sellers around the world. Buying options are soon to be introduced in the United States, and the full launch will wait until 2021.

Following the official statement, Bitcoin prices increased in value, reaching 12,000 points. Apart from offering bitcoin, PayPal will also allow transactions via Ethereum, Litecoin, and Bitcoin Cash.

More About Crypto Popularity

The virtual currency has become one of the strongest tools for investors who benefit from their fluctuating prices.

Speaking on the new decision, PayPal announced:

“We aim to increase consumer understanding and adoption of cryptocurrency. As part of this offering, we will provide account holders with educational content to help them understand the cryptocurrency ecosystem."

We can also hear the opinions of experts regarding the new inclusion. Author of Attack of the 50 Foot Blockchain, David Gerard said:

"I'm at a loss as to who the market is for PayPal as a crypto-exchange."

He also pointed to the volatility of bitcoin and weak regulation which looks like "gambling on penny stocks".

David added:

"Have a flutter, drop $10 on it, you'll learn things you wouldn't learn any other way - but you are gambling. There will be a lot of big players who manipulate the price. I don't expect much of a market for this beyond existing crypto holders... I'm baffled that PayPal would offer this, and it's not clear what they're trying to do here”

He concluded:

"There must be someone at PayPal who is very interested in cryptocurrencies," he added.

What Is Expected

PayPal is not the first payment company that decided to introduce crypto options. Both Square's Cash app and Revolut have already offered virtual currencies, but PayPal seems to be the biggest contender in the market.

Regarding the utilization of bitcoin, PayPal will convert the cryptocurrency into the national currency and the paid company will always receive the correct amount in pounds or dollars but never virtual coin. There will not be incremental fees but the certainty of value.

Source:

“PayPal allows Bitcoin and crypto spending”, bbc.com, October 22, 2020.