Payments giant Paypal says that its customers can buy, sell, and hold bitcoin and other virtual coins with their online wallets. The company also says that its customers will be able to use cryptocurrencies to shop for 26 million merchants on its network from the beginning of 2021.
The report quotes the president and chief executive Dan Schulman, who said he hoped “the service would encourage the global use of virtual coins and prepare its network for new digital currencies that could be developed by central banks and corporations.”
“We’re working with central banks and thinking about all forms of digital currency and how Paypal can play a role,” Schulman said.
According to the report, U.S. account holders can start buying and selling cryptocurrencies in “the coming weeks” while plans are underway to expand “this to Venmo and some countries in the first half of 2021.”
The report adds that Paypal, which secured the first conditional cryptocurrency license from the New York State Department of Financial Services (NYDFS), “will initially allow purchases of bitcoin and other cryptocurrencies called ethereum, bitcoin cash, and litecoin.” Paypal has partnered with Paxos Trust Company to provide the service.
Meanwhile, the report further explains:
Cryptocurrency payments on Paypal will be settled using fiat currencies, such as the U.S. dollar, meaning merchants will not receive payments in virtual coins.
The news of Paypal’s cryptocurrency entry is a massive endorsement of crypto assets and comes as more mainstream organizations are buying bitcoin and other digital assets.
The entry of payment giants is likely to spark wider adoption of cryptocurrencies, given its wide reach. According to the report, Paypal “has 346 million active accounts worldwide and processed $222 billion in payments in the second quarter.”
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