There is no doubt that development in the use of cryptocurrencies is not being as dizzying as many could foresee, back in October 2008, when Satoshi Nakamoto gave birth to Bitcoin. There is also little controversy in elucidating that the current unheard-of situation will cause the rate of increase in its use to accelerate. It is the theory that they must handle in the most famous network payment service, because, at the end of last October, it was announced that PayPal will allow you to buy, maintain and sell cryptocurrencies.
The above does not mean that the handling of these cryptocurrencies is stagnant, nothing further from reality: according to blockchain.com, there were 31.9 million Bitcoin users on January 1, 2019 and about 45 million on January 1, 2020. In addition, more and more people are making payments without using cash. PayPal, with data from Statista, has increased from 2.6 billion transactions in 2012 to 12,400 in 2019.
In a statement, the company reported on the implementation of this service that will allow you to use cryptocurrencies directly from the PayPal. They are betting on the cryptocurrency sector, they say, because they believe their evolution will become increasingly remarkable. They settle this belief, among other issues, in a Bank for International Payments (BPI) survey, which notes that one in 10 central banks expects to issue their own digital currencies over the next three years. These entities, they point out, account for about one-fifth of the world's population.
“Switching to digital forms of currencies is inevitable, bringing with it clear advantages in terms of financial inclusion, access, efficiency, speed and resiliency of the payment system,” said Dan Schulman, president and CEO of PayPal. “Our global reach, digital payment expertise, bilateral network, and rigorous security and compliance controls give us the opportunity and responsibility to help facilitate the understanding, redemption, and interoperability of these new exchange instruments. We look forward to working with central banks and regulators around the world to provide our support and make a significant contribution to shape the role digital currencies will play in the future of global trade and finance.”
PayPal will trade bitcoin, Ethereum, Bitcoin Cash and Litecoin
For now, PayPal will allow the use of four cryptocurrencies directly from your digital wallet: Bitcoin, Ethereum,Bitcoin Cash and Litecoin. The service will first be available to PayPal users in the United States and, in the first half of 2021, will be extended to other markets. It will also be possible to use cryptocurrencies on Venmo (the mobile payment service of PayPal).
The company has received a one-of-a-kind conditional Bitlicense from the New York State Department of Financial Services (NYDFS). “NYDFS approval means continuing along the line of the announcement we made in June 2020 about a new framework for a conditional Bitlicense that would encourage, promote and help interested institutions centrally access the New York virtual currency market,”said Linda A. Lacewell, NYDFS superintendent.
Learn how to use cryptocurrencies with PayPal
Those with a PayPal account will be able to receive educational content to help them understand the risks and opportunities associated with investing in cryptocurrencies and information about blockchain technology.
Starting in early 2021, they point out, PayPal customers will be able to use their cryptocurrencies to pay in PayPal 26 million merchants worldwide. Consumers will instantly convert their cryptocurrency balance into fiduciary currency without additional fees or fees.
That is, they explain in PayPal, the cryptocurrency simply becomes another source of financing within PayPal's digitalwallet, “adding an improved utility for cryptocurrency holders, while addressing previous concerns about the volatility, cost and speed of cryptocurrency-based transactions.”