By Solomon Odunayo
PayPal Holdings Inc, an electronic commerce company that facilitates payments between parties through online transfers, has recently joined the cryptocurrency market on 21st October 2020, to allow its customers to buy, sell and hold Bitcoin (BTC) and other digital currencies, such as Ethereum (ETH), Bitcoin Cash (BCH), and Litecoin (LTC), on its payment platform.
In a statement, the company said its customers will be able to use cryptocurrencies to shop at the 26 million merchants on its network starting in early 2021.
According to PayPal’s President and Chief Executive, Dan Schulman, the service is expected to encourage the use of cryptocurrencies across the world and get its network ready for the much talked about Central Bank Digital Currencies (CBDCs).
He noted:
“We are working with central banks and thinking of all forms of digital currencies and how PayPal can play a role.”
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Crypto Payments on PayPal Will Be Settled Using Fiats
According to the report, cryptocurrency payments on PayPal will be settled using fiat currencies such as USD. This implies that merchants will not receive payments in digital currencies.
PayPal is preparing for a digitized payment system, as many central banks around the globe express their interest in developing digital versions of their respective national currencies in the coming years.
In 2019, the payment giant was a founding member of a Facebook-led cryptocurrency project, Libra, but later discretely dropped out after a couple of months.
PayPal to Start With Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), and Litecoin (LTC)
PayPal has reportedly secured the first conditional crypto license from the New York State Department of Financial Services. The payment company will start by allowing users to buy Bitcoin (BTC) and some other cryptocurrencies, including Ethereum (ETH), Bitcoin Cash (BCH), and Litecoin (LTC). Other altcoins may be added subsequently.
Read Also: Visa’s Head of Crypto Reveals What Bitcoin (BTC) Would Benefit From Central Bank Digital Currencies
PayPal is in partnership with Paxos Trust Company to render the crypto buying and selling service.
Reacting to the new development, the co-founder of Gemini exchange, Tyler Winklevoss, wrote, “PayPal is an important bridge between the mainland and the island of crypto. The diaspora from legacy finance is happening and this is the kind of infrastructure that will help make that happen. Soon there will be a flippening and crypto will be the mainland & fiat the island.
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