PayPal has entered the cryptocurrency market and announced that its customers will be able to buy and sell Bitcoin and other virtual currencies using their PayPal accounts.
Those virtual currencies could be used to buy things from the 26 million merchants who accept PayPal, he said. PayPal plans to roll out call options in the US over the next several weeks, with the full rollout due early next year. Bitcoin prices surged along with the news, breaking the $ 12,000 (£ 9,170) mark. The other cryptocurrencies to be added first will be Ethereum, Litecoin, and Bitcoin Cash (a derivative of Bitcoin).
Everything could be stored “directly within PayPal’s digital wallet,” the company said. Cryptocurrencies have remained a niche payment method, in part due to the rapid change in prices they can experience compared to traditional state-backed currencies. That has made them popular with some types of investors. PayPal said its goal is “to increase consumer understanding and adoption of cryptocurrency.”
As part of this offering, PayPal will provide account holders with educational content to help them understand the cryptocurrency ecosystem,” he said. But David Gerard, author of Attack of the 50 Foot Blockchain and the upcoming Libra Shrugged: How Facebook Tried to Take Over the Money, said PayPal was describing “a market for daily cryptocurrency transactions.” I don’t know what the market for PayPal is as a crypto exchange,” he said.
He likened it to playing the stock market, but to Bitcoin, whose volatile and less regulated nature was like “betting on penny stocks. Have fun, spend $ 10 on it, you’ll learn things you wouldn’t learn otherwise, but you’re gambling,” he warned. He said there were “a lot of big players who manipulate the price” and that ordinary people risk losing their money. I don’t expect much of a market for this beyond existing crypto holders
“There must be someone at PayPal who is very interested in cryptocurrencies,” he added I am puzzled that PayPal is offering this, and it is unclear what they are trying to do here,” he said. Other payment companies, such as the Square’s Cash app and Revolut, have already offered cryptocurrencies for sale. But PayPal has one of the largest commercial networks in the world. When it comes to using the virtual currencies.