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Why It Was So Important for Paypal to Enter the Crypto Space?

Highlights

    Paypal recently announced a new service to enable the customers to buy, sell and hold cryptocurrency from their Paypal account.

    The move can benefit the crypto space and the blockchain platform, where-in other projects may be tested in real-time in future.

How Best will Papal will be benefitted?

Paypal one of the largest online payment processors in the world has entered the crypto space. The plan was initially was hinted to roll out in collaboration with one of the crypto platform Paxful. 

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This announcement rallied Bitcoin to new levels surpassing the all-time high of 2020. Now, rumours of Paypal’s plans to acquire BitGo, a cryptocurrency wallet, is outspread in the market.

This came up as an astonishing move by the company as in the past, the ex-CEO of Paypal had termed Bitcoin as a ‘biggest scam’. And now, the current CEO Daniel Schulman owns Bitcoin.

Paypal claimed that it has acquired a ‘conditional Bitlicense’ form New York State Department of Financial Services. With more than 26 million merchants worldwide, crypto space is now very eager for wider crypto adoption. 

The main catch with Paypal would be surrounding the transaction fees. As currently, crypto space has agonized with the high transaction fees, Paypal could address the issue with immediate effect. 

At present, transaction fees are not been charged for any buying and selling until December 31, 2020. Later, the fees are expected to be very less comparatively as they would be charged in USD rather than ETH.

Hence, when the main issue is addressed, more people are expected to adopt the Paypal platform. In fact, Paypal can also be seen as one of the biggest competitors for the upcoming ETH2.0 platform also.

Future of Blockchain with Paypal

The current move is looked upon as one of the most fruitful moves for the crypto space. Paypal has the largest user base and the merchant base in the world. Hence the customers who already use Paypal can have access to the crypto space and the crypto space might also shift on Paypal’s platform.

On the other hand, the merchants who are already on Paypal and want to just give cryptocurrencies a try, are also encouraged. Currently, they are supporting only 4 cryptos, bitcoin, bitcoin cash, litecoin and ethereum, but the future plans include many other assets. 

The wider adoption may lead to a wider acceptance of the cryptos in every sector which inturn may outspread the benefits of being on a blockchain platform. 

The current bitcoin blockchain is popular but has limited transactions compared to that of the other platforms like Solana or ETH2.0. If the new projects get tested on Paypal, then they might get more popular than Bitcoin or Ethereum too.

Collectively, any positive move that could help in adopting blockchain and cryptos are very much welcomed in the crypto world. But the only concern would be, Paypal should not suspend this service as it did before terming cryptos as ‘illegal’.

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Sahana Vibhute

A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.

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