Above, PayPal payment with Bitcoin
Date: October 21st, 2020
Media: Reuters
What happened?
Paypal Holdings Inc. is joining the cryptocurrency market allowing its customers to buy, sell and hold cryptocurrencies. So Paypal Holdings Inc is getting prepare for this new way of payment processing and encouraging its use. US account holders will be able to trade with crypto currencies in the next few weeks.
Whom and where it affects?
The main affected group of people is the U.S. accounts holders of Paypal. For now only the U.S. customers will be able to trade with crypto currencies but Paypal plans to expand to Venmo (Company property of Paypal and dedicated to mobile payment services) and more countries in 2021.
What sort of public or private institutions are involved?
There are some institutions involved in this move done by Paypal. Obviously, Paypal Holdings Inc is the main institution here alongside some central banks because the firm wants to be involved with every digital currency they can. In another side there is another institution that played a big role and it is the New York State Department of Financial Services because they gave Paypal the first conditional cryptocurrency license.
There are some more important FinTechs companies, as RobinHood Markets Inc and Square Inc, that are joining this “crypto movement” but not in the same size as Paypal.
Why is it important for Banking and Finance?
It is all about the payment processing. All Central Banks will have, eventually, their own crypto currency and this move done by Paypal is encouraging the use and development of all kind of digital currencies.
What do you think will be the consequences in the foreseeable future?
In the foreseeable future we can predict that there will be an increase of the use of crypto currency as a payment method. Furthermore, there is going to be an increase of companies that join the movement and an increase of the amount of crypto currencies that we can work with.
Key words
Cryptocurrency, PayPal, Payment method, Digital currency, Central Bank, Mobile payment, Bitcoin