In breaking news from Reuters, PayPal, one of the online payment giants, announced its entry into the crypto market by allowing its clients to trade bitcoin and digital currencies through the company's online wallets.
PayPal announced that it obtained its first cryptocurrency license from the highest regulator in the United States, the New York State Department of Financial Services (NYDFS).
And PayPal previously entered into a partnership with the "Paxos Trust" to facilitate the cryptocurrency trading service.
Cryptocurrency trading facilities from PayPal will be available first to US customers in the coming weeks, after which the company will slowly roll out services to the rest of the world and expand these services also towards the Venmo wallet by early 2021.
The online payment giant has been waiting on the edge for some time to enter the crypto market.
PayPal’s entry into the cryptocurrency market leads to great optimism, especially given the broad base of PayPal users.
However, PayPal is not the first to take this step, as there are competitors in this arena, such as "Square," which recently invested $ 50 million in Bitcoin.
In his interview with Reuters, Dan Shulman PayPal CEO said: "We are working with central banks and thinking about all forms of digital currencies and how PayPal could play a role."
PayPal to expand in crypto market by 2021
The news had a very strong impact on Bitcoin, which rose quickly upon the news of PayPal entering the crypto market, as the price of Bitcoin at the time of writing this article was estimated at $ 12420 on the Binance platform.
In what could be said as a big push for the use of cryptocurrencies, PayPal also plans to introduce cryptocurrency shopping facilities in early 2021.
This will be a mega event where PayPal customers will be able to shop across 26 million registered stores worldwide using digital currencies.
PayPal said its service could be a game-changer in encouraging the global use of digital currencies.
Besides, PayPal will also work on its network infrastructure to accommodate the upcoming Central Bank digital currencies (CBDC) in the future as well.
PayPal told Reuters that all cryptocurrency payments on its platform will be settled in the form of fiat currencies.
Thus, merchants will not receive payments in the form of digital currencies.
Veterans of the cryptocurrency market are already excited about PayPal entering the crypto market, and many of them seemed pleased with this nice news:
BREAKING: PayPal is announcing today that you will be able to buy, sell, and shop with Bitcoin and crypto on their platform.
— Pomp 🌪 (@APompliano) October 21, 2020
Game on! pic.twitter.com/m2Lais8oub
