PayPal will support crypto by 2021, over 26 million stores accept PayPal
Payment processing giant PayPal announced that it will enter the crypto market in 2021.
According to the press release, PayPal users will be able to perform crypto transactions on its platform and make payments to merchants using digital currencies. Earlier there were some speculations about PayPal accepting cryptocurrencies. The PayPal services are being used by over 300 million customers worldwide and 26 million stores are currently accepting PayPal as payment method.
The payment system will be settled using fiat currencies due to the volatile nature of cryptocurrencies with PayPal taking care of the conversion.
PayPal revealed that it has been speaking with different central banks globally on the role it can play in the development of digital currencies.
Easy integration of Central Bank Digital Currencies
The payment processing giant further revealed that the launch of crypto operations will help the company easily integrate Central Bank Digital Currencies (CBDCs).
CBDCs have been one of the biggest topics in the crypto space with Bahamas recently launching their “Sand Dollar” digital currency. The European Union is also researching plans for a digital Euro while China has reached advanced stages in the launch of a digital Yuan.
PayPal will partner with Paxos
PayPal will partner with Paxos to support cryptocurrency payments and has already obtained a conditional cryptocurrency license from the New York State Department of Financial Services.
Also, PayPal users will be able to purchase cryptocurrencies through the app and features a crypto wallet, letting users to buy, sell and hold crypto.
This is a big development for crypto adoption as PayPal is one of the biggest payment providers in the world. The platform has over 300 million users and processed $222 billion worth of transactions in the Q2 2020.
This is not its initial foray towards crypto as it was among the founding members of the Libra association, but dropped out following regulatory pressure mounted on the project.
This news has been well received by the crypto community with many saying that it could herald a new era of crypto adoption.