PayPal joined the cryptocurrency market this week, allowing customers to buy, sell and hold bitcoin and other virtual coins using online wallets.
PayPal users will also be capable to use cryptocurrencies to shop at the 26 mil merchants on its network starting at the begining of 2021, the company said in the statement.
PayPal hopes the service will certainly encourage worldwide use of virtual coins and prepare its network for new digital foreign currencies that may be developed by central banking institutions and corporations, President and Chief Executive Dan Schulman said in an interview.
‘We are working with main banks and thinking of all of the forms of digital currencies and exactly how PayPal can play a role, ’ he said.
Account holders in america will be able to buy, sell and hold cryptocurrencies in their PayPal wallets over the coming several weeks, the company said. Other countries, such as the UK, could follow in time.
Various other mainstream fintech companies, for example mobile payments provider Sq . Inc and stock trading app firm Robinhood Markets Inc, allow users to buy promote cryptocurrencies, but PayPal’s launch is noteworthy given the vast reach.
The company, located in San Jose, California, provides 346 million active balances around the world and processed $222 billion in payments in the second quarter.
Cryptocurrencies tend to be volatile, making them attractive to speculators, but much less appealing to merchants and buyers.
Transactions have been slower and much more costly than other mainstream payment systems.
Cryptocurrency payments on PayPal will be settled using fiat currencies, such as the U. H. dollar, meaning merchants will never receive payments in digital coins, the company said.
Many central banks around the world have expressed their intention to develop digital variations of their currencies in the arriving years, while Facebook Inc-led the creation of a cryptocurrency project called Libra in 2019. PayPal was a founding member but dropped out there after a few months.
PayPal, which has secured the first conditional cryptocurrency license in the New York State Department associated with Financial Services, will initially enable purchases of bitcoin as well as other cryptocurrencies called ethereum, bitcoin cash and litecoin.