There are rumors that PayPal is finally entering the cryptocurrency market. The cryptocurrency wallet and exchange are reportedly to be integrated. This would allow PayPal users to buy, sell and store cryptocurrency from the PayPal app. This would be a huge step forward into the cryptocurrency space for PayPal, which previously held crypto at arm's length. One thing is for sure, this is another industry giant joining the cryptocurrency revolution.
Peter Thiel is already Bitcoiner
Peter Thiel, the legendary investor and co-founder of PayPal, already uses cryptocurrency. Back in 1999, Til quoted the statement
“Encrypted money will change the world”
This hints that previously PayPal only wanted it to be able to offer what Bitcoin and other cryptocurrencies offer. However, borderless transactions seem to be a feature that excludes decentralized cryptocurrencies. There is ample evidence that Bitcoin is what Peter Thiel wanted for PayPal. PayPal's original goal was to provide a digital currency free from government interference. It is very similar to Bitcoin.
PayPal will bring 325 million users to cryptocurrency
PayPal has a user base of approximately 325 million active users per month. This is a huge number of people using the application for money. A huge number of these people interact with cryptocurrency. In 2019 alone, PayPal processed transactions worth about $ 711 billion. This is about three times the current market for all cryptocurrencies. PayPal already stores huge amounts of money for its customers. Now they provide cryptocurrency to buyers.
PayPal Partnership with Coinbase
PayPal started its relationship with Coinbase, one of the largest cryptocurrency exchanges in the world in 2016. Coinbase has added the ability to withdraw funds to PayPal. This helped solve a long-standing problem in the world of cryptocurrencies. That is, to sell cryptocurrency for fiat currency and be able to use it shortly thereafter. PayPal is inherently faster and better than most banks, so the Coinbase integration was a welcome addition. It appears that PayPal will be using Coinbase's liquidity to enable users to trade.
Money will be diversified and invested
PayPal is not just a payment processor, in many ways it is the first digital bank account. Many people leave money in their PayPal account on a rainy day or for online shopping. This parked money can now be diversified and invested in cryptocurrencies. It is likely that PayPal will offer its users only a small selection of cryptocurrencies. The most likely options are Bitcoin and Etheruem. Regardless of when users have one of these cryptocurrencies, getting any other is not a difficult process. Users are free to transfer their cryptocurrencies to any number of exchanges to diversify their holdings. The wider crypto community welcomes PayPal. This day was long awaited. Now the savvy among us must do our part to educate the new 325 million cryptocurrency users.