PayPal Holdings Inc announced to join the cryptocurrency market today, allowing 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, President and Chief Executive Dan Schulman said in an interview.
PayPal is in talks with central banks and exploring how they can play a role.
President and Chief Executive Dan Schulman said that they are working with central banks and thinking of all forms of digital currencies and how PayPal can play a role,” he said. U.S.-based account holders will be able to buy, sell, and hold cryptocurrencies in their PayPal wallets over the coming weeks, the company revealed. It plans to expand to Venmo and some countries in the first half of the next year. PayPal entering the crypto space is major news for the industry.
Crypto payments on PayPal will be settled using fiat currencies.
Cryptocurrency payments on the payment network will be settled using fiat currencies, such as the U.S. dollar, meaning merchants will not receive payments in virtual coins, the company said. PayPal secured the first conditional cryptocurrency license from the New York State Department of Financial Services earlier. The company will initially allow purchases of bitcoin and other cryptocurrencies called ethereum, bitcoin cash, and litecoin, it revealed. It partners with Paxos Trust Company to offer the service. Oher mainstream fintech companies, including Square Inc and stock trading app firm Robinhood Markets Inc, also allow users to buy and sell cryptocurrencies.