The blockchain and cryptocurrency sphere is here to stay as more institutions move into this fast-growing space.
Not to be left out, payment giant PayPal launched a crypto trading option on its platform last year. In line with this, it has furthermore revealed plans to invest in a cryptocurrency-focused business unit. According to reports, this investment is in a bid to expand its crypto options.
Daniel Schulman, CEO of PayPal, revealed these plans on earnings day when he spoke about PayPal’s proposed crypto plans for the year. He also disclosed that the payment processing firm is looking to enable users to fund their wallet or account with cryptocurrency. According to Daniel, this feature is slated to go live in the first quarter (Q1) of 2021.
Cryptocurrency (DeFi) and Traditional Finance (CeFi)
Schulman further added that, for now, traditional financial systems are slow, expensive, and essentially outdated. The world today is looking to enjoy transactions that are completed within seconds, not days, and definitely not weeks. A future where financial transactions are less expensive and where everyone is in charge of their funds (a true financially inclusive system).
Interestingly, cryptocurrencies and the DeFi space bring to life these features. According to Schulman, this knowledge of the capabilities of cryptocurrency, blockchain, and the entire digital asset space is behind its plan to invest in a new crypto business unit. He envisions that PayPal’s crypto-focused business unit would “help shape this more inclusive future.”
The payment giant currently boasts of over 29 million merchants around the globe. Introducing cryptocurrency as a funding source is sure to facilitate more merchants interested in accepting crypto. Notably, this move by PayPal will also open up the crypto space to PayPal’s over 29 million merchants. This will subsequently improve awareness and adoption of cryptocurrencies. As previously stated, the introduction of the crypto funding option on PayPal is expected to take place in 2021 Q1. Schulman further added that the payment processing firm “hopes to launch our first international market in the next several months.”
According to Daniel Schulman, this investment is just one of the platform’s first steps to moving into the blockchain and crypto space. PayPal has plans to go all out with regards to driving crypto usage on its platform.
PayPal and the Cryptocurrency Space
Previously, PayPal has been really unsure about moving into the cryptocurrency and blockchain space. Interestingly, it was among the first supporters of Facebook’s highly-controversial Libra stablecoin. The payment platform was also among the first to exit the partnership when the stablecoin came under huge criticism by regulators worldwide.
Last October, the payment platform finally announced plans to launch crypto-based services on its platform. To achieve this, it strategically partnered with Paxos. In November 2020, the payment platform took its interest in cryptocurrency a notch higher and announced that its services were now available to interested U.S. citizens and residents.
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