December 2, 2020

PayPal will give users the ability to buy and sell cryptocurrency

Payment system users will be able to buy, sell and store bitcoin and other digital coins, and also pay with them in 26 million stores.

PayPal will add support for cryptocurrencies,which will allow users of the payment system to buy and sell Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH) and Litecoin (LTC), as well as store them on the built-in wallet. PayPal will not be charged for storing cryptocurrency, and until December 31, 2020, the system does not intend to take any commission when buying or selling cryptocurrency.

In addition, in 2021, the app will includethe ability to pay with digital assets in 26 million retail outlets, the payment system said. Stores will not accept cryptocurrency directly, but after conversion to dollars. This was made possible by PayPal obtaining a special Bitlicense license from the New York State Department of Financial Services (NYDFS).

At the first stage, perform operations withCryptocurrency in the PayPal system will be available only to users from the United States, this feature will appear in a few weeks. In the first half of 2021, the company plans to enter the international market by adding the ability to work with digital currencies in the Venmo payment system.

Daniel Schulman, Chief Executive OfficerPayPal, expressed the hope that the emergence of a new feature will speed up the process of cryptocurrency acceptance by society. He also noted that this update will help prepare the payment system for possible work with digital currencies issued by states and corporations.

“We work with central banks and think about all forms of digital currencies and what role PayPal can play in that,” Schulman said.

EXMO Exchange CEO Sergey Zhdanov believes thatthe PayPal initiative will help the wider acceptance of cryptocurrency. Another positive factor is the approval of the US financial regulator, which has a great influence on the international arena.

“Undoubtedly adding the ability to purchasecryptocurrency from a giant like PayPal will lead to its wider distribution. In addition, it gives a signal to the entire market to receive a green light from the US regulator for legal operations with the cryptocurrency of all citizens. And given the fact that today the influence of the United States and the decisions of its regulator on the market is undoubtedly great, I think we may soon see positive movements in the market, "Zhdanov said.

The elder has a different point of view.Nikita Zuborev, analyst at Bestchange.ru. In his opinion, the PayPal initiative will not significantly change the situation with the spread of cryptocurrencies. First, the payment system can hardly be considered a new gateway for the sale of digital coins and the withdrawal of fiat money. The reason is high fees and serious requirements regarding compliance with anti-money laundering legislation.

Second, PayPal has always had a seriouscensorship of operations and a very specific return policy, Zuborev specified. According to him, the payment system initiative could have a positive impact on the cryptocurrency space, but it should not be overestimated.

“You can consider the event as positivemoment for the market in the aggregate of all news, but the impact on the market as a whole is clearly overrated by Schulman. The recognition of cryptocurrencies will improve to some extent, but not significantly. In any case, it is worth monitoring the situation and in practice assessing the conditions for buying / selling cryptocurrencies, ”Zuborev said.

Amid the PayPal announcement, the bitcoin rate rose 1.6% to $ 12,400.

PayPal confirmed that in July the companyhas partnered with blockchain startup Paxos to launch its cryptocurrency service. This will allow more than 300 million users of the payment system to make transactions with digital assets.

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