PayPal is in talks with some major cryptocurrency companies, including Bitcoin custody provider BitGo which, once completed, could expand the online payments company’s exposure to digital currencies. Speaking with people familiar with the matter, Bloomberg reported that a deal with BitGo could be completed in a matter of weeks. BitGo provides custody solutions that allow its customers, primarily institutional investors, to safely and securely store Bitcoin.
Acquiring BitGo would give PayPal a major breakthrough in the crypto industry.
The online payment giant PayPal would become more entrenched into the cryptocurrency space once it acquires a major company like BitGo. However, some have expressed concerns with the move. Thorchain, another cryptocurrency company, said PayPal acquiring BitGo would mean that the majority of wrapped Bitcoins Ethereum-based tokens that represent Bitcoins that are custodied in the latter — would be in the hands of the payments company. “PayPal is not a good actor in this space. Position accordingly,” Thorchain had tweeted. Bitcoin reached as high as $13,200 before closing at $12,802 on Wednesday after PayPal announced to enter the crypto market.
PayPal will allow its users to buy, sell, and shop using crypto.
As reported earlier, online payment giant PayPal announced to join the cryptocurrency market, allowing its customers to buy, sell, and hold bitcoin and other virtual coins using the U.S. digital payments company’s online wallets. PayPal customers will also be able to use cryptocurrencies to shop at the 26 million merchants on its network starting in early 2021, the company said in a statement. The payment giant hopes the service will encourage the global use of new digital currencies and CBDCs that may be developed by central banks and corporations.