Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
PayPal’s crypto entrance is set to boost both retail and merchant cryptocurrency adoption — Market Watch
When it comes to mass adoption, Bitcoin (BTC) and other cryptocurrencies received a major boost this week after PayPal Holdings Inc., the online payments giant that has a $239 billion market capitalization, announced the addition of four major cryptocurrencies to its product offerings. Starting in 2021, users can buy, hold and sell cryptocurrency directly from their PayPal account.
Following PayPal’s announcement, the price of BTC and many altcoins rose significantly.
As stated by PayPal, the surging interest toward digital payments — driven by COVID-19 and the development of central bank digital currencies, or CBDCs — accelerated the company’s adoption of cryptocurrencies.
The four supported cryptocurrencies — BTC, Ether (ETH), Bitcoin Cash (BCH) and Litecoin (LTC) — will be made available first to users in the United States in the coming weeks and are expected to extend to Venmo and select international markets in the first half of 2021.
PayPal’s crypto strategy, in brief
PayPal stated that customers will be able to use cryptocurrency holdings to fund their purchases with 26 million merchants worldwide. To provide a seamless experience, no service fee is charged for the buying or selling crypto through the end of the year. Additionally, no fees will be charged for holding cryptocurrency in a PayPal account. The company also ruled out any conversion fees between cryptocurrency and fiat. Likewise, on the merchant’s side, PayPal does not impose any additional integrations or fees on accepting crypto payments.
PayPal has also been granted a conditional BitLicense by the New York State Department of Financial Services. Additionally, PayPal has continued to expand its crypto strategy through partnerships with custodians. It has been reported that PayPal is exploring the acquisition of Bitcoin custodian BitGo Inc. for its custodial services.
There are limitations to PayPal’s crypto offerings, however. Users cannot deposit or withdraw cryptocurrency in and out of their accounts — meaning they can only hold cryptocurrencies bought through their PayPal account.
Finally, Meltem Demirors, the chief strategy officer at CoinShares, believes that PayPal may launch its own digital currency in the next six to 12 months.
Venmo’s millennial market may be the key to mass adoption
While PayPal has 346 million active users, as of Q2 2020, its subsidiary, Venmo, has the highest potential to boost the mainstream adoption of cryptocurrency.
Venmo is a mobile peer-to-peer payment app with 52 million users that dominates the mobile payments market among American millennials — among whom BTC has gained popularity. Of this demographic, 59% reportedly believed cryptocurrencies are positive innovations in financial technology. Moreover, 17% of millennials reportedly owned cryptocurrencies. Additionally, JP Morgan Chase recently noted that millennials’ preference for BTC over gold is the key driver for the digital currency’s long-term price appreciation potential.
Visit https://www.okex.com/ for the full report.
Disclaimer: This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involve significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary. OKEx Insights presents market analyses, in-depth features, original research & curated news from crypto professionals.
Not an OKEx trader? Sign up, start trading and earn 10USDT reward today!
Why PayPal and Venmo are a bigger boost to crypto adoption than Revolut was originally published in OKEx Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.