On October 21 PayPal have announced that they will allow buying and selling cryptocurrencies with their PayPal accounts. What does it mean for the crypto economy?
Both Cryptocurrencies and PayPal payment system have something in common — they allow instant transactions of funds all around the globe.
People who were in crypto for a while know that selling crypto for PayPal vice-versa is a very complicated task involving shady third-parties, as the official PayPal rules don’t allow purchase of crypto actives. But soon that is about to change.
In early 2021 PayPal promises to deliver a new system that allows purchase and storing of crypto actives using PayPal account balance.
Along with the new capabilities of crypt trading, PayPal will be releasing educational material to help consumers to understand how cryptocurrency works. “As part of this offering, PayPal will provide educational content to help them understand the cryptocurrency ecosystem” the official statement said.
Previously PayPal tried to get a slice of crypto economy pie by partnering with Facebook’s cryptocurrency Libra, but they decided to break the alliance in a few months after signing the partnership.
The cryptocurrencies are taking a strong position on internet markets, and soon more services will be accepting the major cryptos as payment method.
Although PayPal waited a long time to allow crypto trading, eventually they had to roll with the times and allow it as the Bitcoin prices reach $14000 mark.
Although the PayPal executives don’t say it directly, but most likely the main reason why this decision took so long is because of general distrust for cryptocurrencies in previous years.
Now that government implement their own cryptos and financial institutions invest big into cryptocurrencies, moving towards cryptocurrency implementation is the right thing to do.
Where will it get us in the long run? I assume more small businesses will allow crypto purchases, as the owners will be able to easily convert crypto to PayPal balance which they can easily and legally transfer to their bank account.
The cryptocurrency prices will also be affected positively with a new source of crypto purchases from PayPal balances. It will be very easy and streamline to purchase crypto for those who used to PayPal and that’s a huge market.
October 31 2020
Written by John Badnick