PayPal Showing Interest In Cryptocurrency
PayPal is popularly recognized as an online payment network that provides low-cost services to companies and consumers. In addition to payment services, PayPal offers a variety of other products and services. It has approximately 377 million members worldwide, and a market valuation of $282.58 billion, making it one of the world’s most valuable corporations.
PayPal had expressed interest in cryptocurrency for the first time in 2013. The corporation was still hesitantly evaluating the crypto market. It has incorporated a feature that allows consumers in the United States to withdraw fiat cash from Coinbase and deposit it into their PayPal accounts for free.
The Growth Behind PayPal
PayPal is a global e-commerce payments network that was created in 1998 and has since grown to be the preferred payment method for over 185 million users, for both personal and business transactions. It went even deeper into the cryptocurrency area by joining the Libra Association and partnering with Coinbase, BitPay, and GoCoin to allow online merchants to accept Bitcoin payments. PayPal’s announcement of commercial ties with crypto-focused startups was the company’s first big move toward embracing the crypto sector. PayPal revealed that its clients might use digital wallets to purchase, trade, and keep cryptocurrencies such as Bitcoin, Ether, Bitcoin Cash, and Litecoin and utilize the virtual currency to shop at its 26 million merchants. This would alter the way players transact online, from Steam through to the best US PayPal casinos. In 2020, all qualifying PayPal account users in the United States were able to buy, hold, and trade cryptocurrencies directly through PayPal. PayPal’s main goal is to make cryptocurrency more accessible, which is a big lure for many new investors.
When they announced their intentions to allow its multi-million user base to engage with Bitcoin assets, it caused a stir. PayPal announced a large surge in new active accounts, leading to further gains in net profit. PayPal’s success with Bitcoin pushed the business to add digital asset support for one of the companies it manages.
Since more retailers are adopting a “digital first” approach to payments, the usage of digital currencies is expected to become more common. Customers are increasingly using digital wallets, which “are perfect complements to digital currencies,” as shops move to accept payments via smartphones and QR codes, even in-store.
The Possibility for a PayPal Coin
PayPal has acknowledged that it’s looking into the potential of developing its own native stablecoin. PayPal Coin might be the name of the next cryptocurrency. While moving forward with the stablecoin project, the corporation will cooperate closely with authorities. Stablecoins are cryptocurrencies that are backed by the value of an actual currency or commodity and are priced accordingly.
Stablecoins are a type of blockchain-based e-money that’s linked to non-blockchain assets like government bonds, reserve currencies, or gold. The idea is tying a stablecoin to a stable resource like the US dollar will smooth out the dramatic price fluctuations that are frequently occurring in the crypto world. When someone posted the emblem of a PayPal currency within PayPal’s iOS app, the concept for PayPal stablecoin was born.
Since the firm currently provides its clients with a larger range of cryptocurrency alternatives starting at $1, it also offers a suite of crypto solutions for small companies. It makes sense for PayPal to expand its crypto efforts because it already has payment processing infrastructure in place and the worldwide size and established retail ties. It has gradually entered the cryptocurrency arena throughout the past few years.
It began facilitating the purchase of a limited number of cryptocurrencies. This includes the addition of a checkout with the crypto option that allows customers to purchase items using their digital coins. Although PayPal’s current cryptocurrency support is limited, the app indicated that the firm is trying to support the NEO currency and studying the prospect of developing its own stablecoin.