One of the most talked about topics in the cryptocurrency community has been lately PayPal’s announcement that its customers can buy and sell cryptocurrencies. The service is expected to be fully implemented early next year.
The company’s goal to “improve consumer understanding and adoption of cryptocurrency”, as stated in their press release, seems to be a necessary step in popularizing cryptocurrency. The general awareness of the cryptocurrency is still very low. According to data from a Statista survey, Bitcoin (BTC) use in developed countries is below 10%, with the lowest levels in Sweden, Denmark and Japan. Meanwhile, some are optimistic that this number will rise to 90% of the US population by 2030.
Dan Schulman, President and CEO of PayPal said: “eThe move to digital currency forms is inevitable and brings clear benefits in terms of financial inclusion and access. The efficiency, speed and resistance of the payment system; and the ability of governments to quickly distribute funds to citizensSimilarly, former Maltese Prime Minister Joseph Muscat told the United Nations General Assembly in 2018 that cryptocurrencies were the “inevitable future of money”.
PayPal will offer its services to users with Bitcoin, Ether (ETH), Litecoin (LTC) and Bitcoin Cash (BCH).and the company acquired what it claims from the New York State Department of Financial Services Conditional BitLicense “first in class” –a license required to operate a digital currency business in New York – and pe has teamed up with the US-based stablecoin operator Paxos to enable this service for its customers.
Taking into account the fact that PayPal had 346 million active users in the second quarter of 2020 – a number that has increased to 361 million since then, according to the latest quarterly report – The decision to offer cryptocurrency-related services to its customers seems like a significant step towards mass adoption. Last year, Cointelegraph asked experts from the crypto and blockchain industry for their opinion on the mass adoption of cryptocurrencies. This time the question was: Could PayPal’s recent announcement that it will offer crypto payments force the mass adoption of cryptocurrency?
Cristina Dolan, Founder and CEO of InsideChains and Vice President of the MIT Enterprise Forum:
“This is a very exciting announcement that will help increase the adoption of crypto for transferring value or traditional payments by offering a simple and integrated solution to PayPal’s 346 million active users. The hardest part about that Using PayPal Cryptocurrency for payments is the entry and exit ramp of cryptocurrency blockchain networks that use key pairs to make a payment or transfer. Reducing this friction at the time of the transaction makes it easier to integrate into use cases for value transfer. Easy, so becomes it will be less intimidating. This can even increase the speed of crypto and bitcoin spending across the network while enhancing the perception of utility and value as a currency rather than just a store of value. PayPal dominates payment processing, but crypto integration can also attract new customers“.
Dominik Schiener, Co-founder of the IOTA Foundation:
“Since nothing changes at the merchant at the end of these transactions, the takeover currently takes place at the end of the user. The fact that PayPal is adding cryptocurrency as an option for users suggests a future in which both ends of the transaction will be done in cryptocurrencywhich is very exciting for our adoption. This will ultimately lead to mass adoption as well as a new payment method not only among users and merchants, but also among smart devices and smart cities. The more payment platforms accept crypto, the greater the awareness of greater networking with IoT technology. Eventually, cryptocurrency is becoming a part of our everyday lives as more and more companies use it for machine-to-machine payments, for example, or our cars use autonomous payments for tolls, collections and other services.. Crypto transactions offer more options for contactless payments, where our devices can do the end-to-end transaction and we can keep our cards in our wallets. “
Jay hao, CEO of OKEx:
“PayPal’s move to offer cryptocurrency services is extremely optimistic for the space. However, it does not in itself signal immediate mass adoption. What we are seeing, what is an important change, is the normalization of cryptocurrencies. Like Bitcoin and its institutional and large legitimacy domestic companies, PayPal will offer these services to its US customers, but with around 350 million customers worldwide, this is a huge step towards increased awareness and acceptance This does not mean that everyone is rushing to buy Bitcoin, but as this is gradually being accepted, especially in the context of an economic crisis where fiat currencies are losing their purchasing power, more participants will of course come to the market.. I think a lot of payment giants and tech companies like PayPal are also seeing how things are going and they have to join in or be run over by it. I hope that the trend to come, and over the course of 2021, more companies like PayPal, fintechs, hedge funds, brokers and banks will be offering cryptocurrency services, be it the ability to buy them or offer custody services. All in all, the outlook is very promising, but we may have to wait a while before we can say that mass adoption has been achieved. “
Jimmy Song, Lecturer for programming blockchain:
“The only thing ‘forcing’ bitcoin to come is the collapse of fiat money, which is not yet happening. PayPal’s announcement gives people an additional way to buy Bitcoin to store value, or Altcoins to play, that’s all“.
Mati Greenspan, Founder of Quantum Economics:
“Yes. This step is likely to be of great help in introducing cryptocurrencies into real-world payments. The millions of people who prefer to pay with cryptocurrency are always looking for new sellers to accept. PayPal is now effectively adding 22 million sellers to these List and open to more than 300 million active customers. The immediate impact may decrease depending on the level at which PayPal allows customers to transfer crypto to and from their website. In the long run, users will understand the tremendous benefits of using digital assets and realize that they can now transfer value without the need for a third party. In a way, PayPal is sowing the seeds of its own destruction.. “
Roger lake, CEO of Bitcoin.com:
“Of course, a platform with over 300 million active users is helping drive the mass adoption of crypto. Of the four cryptocurrencies PayPal added, it is the most optimistic about Bitcoin Cash and Litecoin, as they are the only ones that can be used. for chain payments at this point. “
These quotes have been edited and compressed.
The views, thoughts, and opinions expressed herein are solely those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Don’t stop reading: