In a recent announcement, PayPal has decided that it wants to get in on the Bitcoin game at running the risk of being left behind by the likes of Square. PayPal has said that they’ll start allowing users to buy, hold and sell Bitcoin and three other cryptocurrencies including Litecoin, Ethereum and Bitcoin Cash.
PayPal’s CEO had said that they’re getting reading for the global shift to digital currencies as the PBOC already has released their digital RMB in China with talks from the ECB planning to release their own digital Euro sometime in the very near future.
PayPal has over 346 million active users and has processed over $222 billion of payments just in Q2 2020. The plan is to allow these PayPal users to hold these cryptocurrencies in their accounts and start to make payments to PayPal merchants in 2021.
It should be noted that unlike CashApp or a few other payment service companies, you will not be able to send or transfer out any physical Bitcoin out of your account. What will happen is that when you go to make a purchase using Bitcoin or the three other cryptocurrencies, PayPal will convert this into fiat prior to sending the money. In short meaning that all cryptocurrencies bought on PayPal, must stay on the PayPal network.
Future Of Digital Currencies
Even though PayPal isn’t really fully offering a true Bitcoin product, the introduction of this product to its 346 million users is a great thing for adoption of cryptocurrencies to the masses. First most people don’t know how to get Bitcoin or the other cryptocurrencies and PayPal creates an easy on ramp into the ecosystem. In addition, once these use of Bitcoin becomes familiar, users might branch out into buying Bitcoin and other cryptocurrencies on exchanges like Coinbase or Gemini.
The future is shifting to digital currencies around the world with the attempt to remove physical cash from the system. This process that is being taken on by the central banks around the world is quickly taken shape and will be ready for deployment sooner than later. It should be noted that with a central bank digital currency, they’ll be able to direct deposit money into your account within a blink of an eye.
Not everyone is happy about this shift into the digital world. Many privacy concerns are being brought up how big brother will now be able to watch over every single transaction that you make with the new digital currency.
The future will be including digital currencies if we like it or not, but just remember that a central bank digital currency is not the same as Bitcoin and other cryptocurrencies that are decentralized.