Januar 18, 2021

Bitcoin booster: 28 million merchants soon to be BTC hodlers thanks to PayPal?

Since the Bitcoin integration, PayPal has increased BTC holdings significantly. With a view to the upcoming service expansion for merchants, the payment service provider is likely to stick to its aggressive purchasing policy.

According to many market observers, the payment provider PayPal is not entirely innocent of the current Bitcoin soaring. Now PayPal CEO Dan Schulman gave an interview to the Canadian broadcaster CNBC and gave some insights into the company’s philosophy in relation to cryptocurrencies. In the interviewSchulman pointed out the ongoing coronavirus pandemic. As a result, dependency on cash has decreased by 40 to 70 percent. Sooner or later the central banks would switch over and convert physical fiat money into digital counterparts. PayPal will of course draw the appropriate conclusions from this.

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The payment service provider will enable the use of cryptocurrencies as a source of funding for 28 million merchants on its platform, according to Schulman.

An important step we’ve taken isn’t just making it easy with PayPal to buy, sell, and hold cryptocurrencies. Early next year, we will allow cryptocurrencies as a source of funding for all transactions of all 28 million of our merchants. This will significantly increase the usefulness of cryptocurrencies.

PayPal and Cash App with high Bitcoin purchases

Schulman then pointed out an eminently important part of the recipe for success of cryptocurrencies. He said the key to sustainable success is working with regulators. PayPal launched its crypto functionality in the United States earlier this month, just a few weeks after the integration was announced. The service should then be available worldwide from the beginning of next year .

PayPal has a total of 360 million active users. Most recently, the company caused a stir by buying up Bitcoin (BTC) and other cryptocurrencies on a large scale. According to asset manager Pantera CapitalThe payment service provider is currently absorbing around 70 percent of all new Bitcoin. PayPal competitor Square also made purchases using the Cash appa considerable amount of bitcoin. The high demand and shortage of supply are some of the main reasons for the current rapid rise in the price of Bitcoin.

The provider of PayPal’s crypto infrastructure is Paxos. The company has already launched its own cryptocurrency with the stablecoin PAX and has also launched a crypto exchange with itBit. Paxos also gave PayPal the first conditional license for virtual currencies from the New York State Department of Financial Servicesreceive. If other, larger financial institutions follow the example of PayPal and Cash App, the Bitcoin supply is likely to become even tighter.