The online payment processor giant announced yesterday that all “eligible PayPal account holders in the United States can now buy, hold, and sell cryptocurrency directly with PayPal.” The original statement’s update reads that users can interact with digital assets from their PayPal application or through their desktop accounts. However, the crypto community remains split in its opinion-whether this is actually good for Bitcoin in the long run.
Would PayPal help bitcoin achieve mainstream adoption?
Several people believe that PayPal’s move is the way Bitcoin will ultimately reach mainstream recognition. Numerous members posted screenshots of their purchases, saying that PayPal has created a very user-friendly interface. Binance CEO Changpeng Zhao even paraphrased Neil Armstrong’s immortal words – “One small step for PayPal, one giant leap for B…” Since Binance Coin is still not listed on PayPal, it’s safe to assume that he was referring to Bitcoin. However, some claimed that this is actually bearish for BTC, as PayPal will not allow withdrawals of the funds. Additionally, many users also have concerns regarding potentially high fees.
One small step for PayPal, one giant leap for B… 👏 pic.twitter.com/Rv1zO1MAkg
— CZ Binance (@cz_binance) November 13, 2020
Bitcoin’s price continues to hover around $16,000.
The price of bitcoin reaches almost a three year high this week when it broke above the $16,000 level—the level not seen since January 2018. With PayPal allowing US consumers to buy, sell, and store bitcoin could help the price keep moving upward. However, it’s worth noting that although eligible US customers can buy or sell crypto assets, that’s the entire scope of what they can do with the coins as of now. The PayPal terms and conditions page reads that “you currently are NOT able to send Crypto Assets to family or friends, use Crypto Assets to pay for goods or services, or withdraw Crypto Assets from your Cryptocurrencies Hub to an external cryptocurrency wallet.”