Giants of payment are in! PayPal would enable users to exchange cryptocurrencies and use them.

Thursday, October 22, 2020, 10:51 GMT

Payment service provider PayPal announced on Wednesday that its online wallet will allow customers to buy, sell and hold Bitcoin and other cryptocurrencies.

Providing such new services will make PayPal one of the largest companies providing encrypted digital currency services to consumers in the United States, which may help Bitcoin and other encrypted digital currencies as a viable payment method to gain wider adoption .

PayPal President and CEO Dan Schulman (Dan Schulman) said in an interview with the media that PayPal hopes that the service can promote the use of virtual currencies worldwide and provide a network for central banks and companies to develop new digital currencies. ready.

He said, “We are working with the central bank to discuss various forms of digital currencies and how PayPal plays a role in them.”

The company said that in the coming weeks, its US account holders will be able to buy, sell and hold cryptocurrencies in PayPal wallets. PayPal plans to expand the service to its peer-to-peer payment application Venmo and other countries in the first half of 2021.

Bitcoin and other virtual currencies have been available for more than a decade, but they have not become widely used payment methods. The volatility of cryptocurrency is attractive to speculators, but it brings risks to merchants and shoppers, and its transactions are slower and more expensive than other mainstream payment systems. In this regard, PayPal stated that it can solve this problem and reduce the risks involved in encrypted digital currency exchanges.

The company said it will provide cryptocurrency payment services starting next year. The company also stated that it has obtained a conditional encrypted digital currency service license from the New York Department of Financial Services, initially allowing the sale of Bitcoin and other encrypted digital currencies.

Other mainstream financial technology companies, such as mobile payment service provider Square and stock trading application company Robinhood Markets, allow users to buy and sell cryptocurrencies. However, given the scale of PayPal’s services, its launch of cryptocurrency-related services has attracted the attention of the industry.

PayPal has 346 million active accounts worldwide, and the scale of payment transactions processed in the second quarter of this year reached 222 billion US dollars.

Boosted by the above news, the company’s stock price rose sharply, setting its best single-day performance in the next month. On the Nasdaq stock exchange on Wednesday local time, PayPal’s stock price rose by 11.11 US dollars to close at 213.07 US dollars, an increase of 5.50%.

Also stimulated by this good news, the Bitcoin transaction price also rose to its highest since July 2019, reaching $12,494. Traders in the cryptocurrency market said that PayPal’s move will boost the price of Bitcoin. Joseph Edwards of Enigma Securities, a London-based cryptocurrency service provider, stated that PayPal’s participation “will have a positive impact on the price of Bitcoin.”