PayPal has officially gone crypto.
The online payments company is now allowing its customers to buy, sell, and hold bitcoin and other digital currencies in PayPal’s online wallets over the coming weeks.
“It's happening. Paypal enters crypto. The announcement came much faster than expected,” noted trader and economist Alex Kruger. “Unclear if the “Square inspired flows” was Paypal buying bitcoin or insiders front-running news. Likely both.”
The company plans to expand to some countries and Venmo in the first half of 2021.
PayPal will further allow its users to shop at 26 million merchants on its network using cryptocurrencies starting early 2021.
This just might open the floodgates to Bitcoin’s mainstream adoption.
However, crypto payments will be settled using fiat currencies, which means merchants won't be receiving payments in digital currencies, the company said.
While this move will provide bitcoin easy access and exposure to millions of merchants and about 346 million users, Ryan Selkis of Messari argues it also means KYC, ‘not your keys, not your coins,’ and of course, CBDCs and shitcons will soon follow.
“We are working with central banks and thinking of all forms of digital currencies and how PayPal can play a role,” said PayPal President and Chief Executive Dan Schulman.
The company secured the first condition crypto license from the New York State Department of Financial Services that enables it to allow the purchase of digital currencies.
For now, the market is excited about this development, as reflected in the price of Bitcoin, which went as high as $12,440.
ultimate hopium pic.twitter.com/TqLF2M9VMM
— CryptoYoda (@CryptoYoda1338) October 21, 2020
PYPL shares also extended gains by 3% right at the market opening.
“This PayPal news is the biggest news of the year in crypto. All banks will now be on a race to service crypto. We have crossed the rubicon people. Exciting day,” said Galaxy’s Mike Novogratz.