PayPal enables all US customers to buy BTC, ETH, BCH and LTC
Since PayPal’s announcement, the Bitcoin price has been on a steady rise peaking to $16,000, hitting an all-time high for 2020. Most analysts think that the trend is still bullish and new records might be on the road.
Today, PayPal skipped the waiting list and officially announced that all users from the United States are allowed to buy, hold and sell cryptocurrencies. The platform now supports crypto transactions in Bitcoin, Bitcoin Cash, Ethereum, and Litecoin within the PayPal digital wallet.
We are pleased to announce that starting today, all of our eligible US customers can now buy, hold and sell #Cryptocurrency directly from their PayPal accounts. We’ve also increased our weekly purchase limit to $20K. Learn more: https://t.co/5yrpNOuA6y pic.twitter.com/2nZHm9qCNI— PayPal (@PayPal) November 12, 2020
Earlier there was a waiting list for US PayPal account holders, but they decided to skip that strategy. The purchase limit has also been increased to $20,000 a week. They will expand their crypto services to the rest of the world in 2021.
Following the announcement, the CEO of PayPal, Dan Schuman added that in today’s economy, shifting to digital forms of currencies is inevitable. He added that with PayPal’s global reach, expertise in digital payments, and the strong security system, it is easier for the platform to use these new instruments of exchange.
He further stressed that PayPal is ready to work with central banks and regulatory bodies to offer support and make sure that digital currencies play their role in the future of finance.
The New York State Department of Financial Services (NYDFS) has also granted PayPal a first-of-its-kind conditional Bitlicense. The license is an initiative to encourage, promote and assist institutions with access to the New York virtual currency marketplace.
The superintendent of the NYDFS added that this development will be beneficial to New York consumers through partnerships with New York legalized virtual currency firms.
PayPal’s Bitcoin volume is over $20 Million daily
Americans are now buying and selling close to $20 million worth of Bitcoin daily. This is an amazing figure considering PayPal allowed for crypto payments last month.
So for anyone looking to track crypto volumes going through PayPal...given Paxos (ItBit) is their liquidity provider, and the exchange was doing ~$3mln a day before, here's a nice chart to follow. Bullish to say the least... - https://t.co/t9Fmj5m9WA @fintechfrank @paulchevs pic.twitter.com/rKbqK5a1bN— Hunter Merghart (@HunterBM) November 12, 2020
The factor behind this rise is the large user base of PayPal and the approval of all US customers. The payments platform boasts of 346 million users, but not all of them are from the US. The addition of crypto transactions is a huge development to further expand its base. Another factor is the ease of diversification of money into crypto which PayPal now offers to millions of its customers.
Unfortunately there are also downsides to the crypto entry of PayPal.