PayPal will soon also offer trading in Bitcoins. Payment provider PayPal is entering the cryptocurrency business. US customers will soon be able to buy bitcoins on the platform. Shortly after the announcement, both companies benefit from the stock market.
PayPal will soon also offer trading in Bitcoins
The payment provider PayPal is entering the cryptocurrency business. In the future, customers in the USA will be able to buy, sell and store Bitcoin and other cryptocurrencies via the PayPal platform. PayPal announced on Wednesday. From the beginning of 2021, it should also be possible to pay merchants with crypto currencies via PayPal. It is planned to expand the offer to other countries in the coming year.
The PayPal shares gained about three percent on the day of the announcement on Wall Street. And the new business also had a positive effect on Bitcoin: the company is more valuable than it has been since July 2019. The price of the oldest and most famous cryptocurrency rose by eight percent to $ 12,854. At the beginning of the week, Bitcoin had cost around $ 11,500.
“Today at the latest the starting shot for a year-end rally should have been given,” said Timo Emden, analyst at Emden Research. “For the industry, PayPal’s entry into the crypto business could have a signal effect for other companies that have been pondering the implementation of digital currencies for some time.”
PayPal wants to increase the acceptance of cryptocurrencies
PayPal is betting that the offer will increase the worldwide use and acceptance of cryptocurrencies, as company boss Dan Schulman said. “We work with central banks and think about all forms of digital currency and what role PayPal can play.” With PayPal competitors like Square and Robinhood Markets, trading in Bitcoins and other cryptocurrencies has been possible for a long time. However, experts assume that PayPal’s entry will spur the market. The California-based company processed $ 222 billion in payments in the second quarter alone and has 346 million accounts.
PayPal got out of the project launched by Facebook for the digital currency Libra last year. The payment service provider justified this by wanting to concentrate on its own business. With Libra, Facebook wants to build a global digital currency that will give users of the social network in regions without a functioning infrastructure access to the monetary system.