One of the most talked about topics in the cryptocurrency community recently is PayPal’s announcement that customers will be able to buy and sell cryptocurrencies. The service is expected to start early next year.
The company’s goal of “increasing consumer awareness and acceptance of cryptocurrencies”, as stated in the press release, appears to be a necessary step in popularizing the cryptocurrency. Awareness of cryptocurrencies remains very low. Bitcoin (BTC) use in advanced economies is less than 10%, with the lowest levels in Sweden, Denmark and Japan, according to a Statista survey. Meanwhile, some are optimistic that the number will rise to 90% of the US population by 2030.
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Dan Shulman, President and CEO of PayPal, said, “Digital currencies are inevitable, with clear advantages in terms of affordability and availability; the efficiency, speed and flexibility of the payment system; and the ability of governments to distribute money quickly to citizens.” Likewise, the President said. Former Minister Joseph Muscat told the United Nations General Assembly in 2018 that digital currencies are the “imperative future of money.”
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PayPal will begin offering its services to users who use Bitcoin, Ether (ETH), Litecoin (LTC), and Bitcoin Cash (BCH), and the company has acquired what they say is the “first A” of BitLicense – a license required to operate a digital currency in New York – and entered into Partnership with Paxos, a US operator of Citecoin, to provide this service to its customers.
Given that PayPal had 346 million active users in the second quarter of 2020 – a number that has since increased to 361 million in the third quarter according to its most recent quarterly report – the decision to provide cryptocurrency-related services to its customers appears significant. A step towards group adoption. Last year, Cointelegraph asked experts in the cryptocurrency and blockchain industries for their views on the massive adoption of cryptocurrencies. This time, the question arose: Could PayPal’s recent announcement to launch a cryptocurrency payment offer lead to massive adoption of cryptocurrency?
Christina Dolan, Founder and CEO, InsideChain, and Vice Chair, MIT Enterprise Forum:
“This is a very exciting announcement that will help increase the adoption of cryptocurrencies for traditional conversions or payments by offering a simple, integrated solution to 346 million active PayPal users. The hardest part of using cryptocurrency in payments is moving away from blockchain crypto networks using key pairs to make a payment Reducing this friction at transaction time will facilitate consolidation into simple value-added use cases, making it less intimidating.It can also increase the speed at which cryptocurrencies and Bitcoin are used on the network, while increasing usability and value as a currency, not just A store of value.PayPal dominates payment processing, but incorporating cryptocurrencies can also attract new customers. ‘
Dominic Shinner, IOTA co-founder:
“Since there are no changes on the seller’s side in these transactions, acceptance will now be on the user’s side. By adding cryptocurrency as an option for users, PayPal talks about a future where both parties to the transaction will participate in cryptography, which is very interesting to us. This will ultimately lead to adoption Massive, as well as a new way to pay, not only among users and vendors, but also with smart devices and smart cities. As more payment platforms accept cryptocurrencies, we will see this growing awareness towards increased connectivity to IoT technology. Ultimately, the cryptocurrency will become a part. From our daily lives where more companies use them for things like machine-to-machine payments, or our cars use offline payments to pay fees, collect fees and other services, crypto transactions offer many options for contactless payments, as our devices handle overall transactions and we can store our cards in our wallet. “.
Jay Howe, CEO of OKEx:
PayPal’s offer to provide cryptocurrency services is very optimistic for the industry; However, this does not in and of itself mean an immediate collective adoption. What we’re seeing, and this is a very important change, is the normalization of cryptocurrencies like Bitcoin and the legalization of large home businesses and companies. Paypal will start offering these services to its US customers, but with an estimated 350 million customers worldwide, this is a major step toward increasing awareness and acceptance.