Stand with Ukraine and Donate here

Payment system PayPal plans to establish the ability to interact with cryptocurrency

Oct 22, 2020 | News
Payment system PayPal plans to establish the ability to interact with cryptocurrency

On October 21, 2020, representatives of the PayPal payment service announced that they plan to integrate the ability to buy, sell and store bitcoins into their Venmo mobile payment service. This will take place at the beginning of 2021.

The company expects that this will facilitate the global use of cryptocurrencies and prepare the world for the planned widespread introduction of digital currencies issued by central banks of different countries - CBDC.

According to the CEO of the company - Dan Shulman: “we are seriously considering the issues of popularizing digital currencies and what role our company can play in this. Including working with central banks ”.

The system will work with the most popular cryptocurrencies at the current moment - Bitcoin, Bitcoin Cash, Litecoin and Ethereum. Transactions using these coins will be automatically converted to fiat, so they can be used to pay for goods at over 26 million merchants worldwide.

And yes, the payment service has already received a limited license to do this from the NYS Department of Financial Services. To do this, however, was necessary to enter into a partnership with Paxos, with which PayPal has already been cooperating on the management of cryptocurrency assets since the summer of 2020.

The market reacted to this statement with lightning speed - a sharp rise in the value of the company's shares. On October 21, the announcement was made and a 5.5 percent increase observed by the close of trading that day. That allowed the capitalization of PayPal to reach another historical maximum - $ 215.83. Which, in turn, brought it to the 21st line in the overall rating of the American stock market capitalization.

All this shows that investors are extremely positive about the prospects for further expanding the use of cryptocurrencies. And that they are slowly preparing for the fact that numerous CBDCs from different countries will soon be released on the market, with which is still needed to somehow establish an interaction. What, in fact, PayPal is going to do.

Published on the EXBASE based on materials from forklog.com