One of the most discussed topics in the cryptocurrency community lately is PayPal’s announcement that their customers will be able to buy and sell cryptocurrencies. The service is expected to be fully rolled out early next year.
The company’s goal of “enhancing consumer awareness and adoption of cryptocurrencies,” as stated in its press release, appears to be a necessary step in popularizing cryptocurrencies. Key awareness about cryptocurrencies is still very low. According to data from a Statista survey, Bitcoin (BTC) usage in developed economies is below 10%, with the lowest levels in Sweden, Denmark and Japan. Meanwhile, some optimists predict that this number will rise to 90% of the US population by 2030.
Related: PayPal̵7;s cryptocurrency integration means that Bitcoin can triple its user base
PayPal’s President and CEO, Dan Schulman, said, “The transition to digital currencies is inevitable, offering a clear advantage in accessibility and inclusion in finance. ; efficiency, speed and resilience of the payment system; and the ability of governments to disburse money to citizens quickly. Similarly, former Malta’s prime minister, Joseph Muscat, told the United Nations General Assembly in 2018 that cryptocurrencies are “the inevitable future of money”.
Related: PayPal’s entry into crypto did not relieve the hype about adoption
PayPal will start by offering its services to users in Bitcoin, Ether (ETH), Litecoin (LTC) and Bitcoin Cash (BCH), and the company acquired it from the New York State Department of Financial Services. BitLicense has -of-it-kind conditions “- license required to operate digital currency business in New York – and partnered with US-based stablecoin operator Paxos to activate this service for your customers.
Considering that PayPal had 346 million reported active users in Q2 2020 – a figure that increased in Q3 to 361 million, according to the latest quarterly report – decided to offer customers services In relation to cryptocurrencies seems to be an important step towards mainstream adoption. Last year, Cointelegraph asked experts in the crypto and blockchain industry for their opinions on the mass adoption of cryptocurrencies. This time, the question is: Could PayPal’s recent announcement to start offering cryptocurrency payments force the mass adoption of cryptocurrencies?
Cristina DolanInsideChains founder and CEO and MIT Business Forum Vice President:
“This is a very interesting announcement that will help increase the adoption of cryptocurrencies for traditional value transfers or payments by providing an easy and integrated solution for the 346 million active PayPal users. The most challenging part of using cryptocurrencies for payments is the on and off ramp from cryptocurrency blockchain networks that use key pairs to make payments or transfers. Reducing that conflict at the transaction point makes it easier to integrate it into simple value transfer use cases, so it will be less intimidating. This could even speed up the spending of cryptocurrencies and Bitcoin across the network while increasing its usability and perceived value as a currency, not just a store of prices. treatment. PayPal dominates payment processing, but cryptocurrency integration can also attract new customers.
Dominik Schiener, co-founder of the IOTA Foundation:
“Since there is no change to the seller’s terminal of these transactions, right now the acceptance will be on the user. PayPal adds crypto as an option for users it comes to a future where both ends of a transaction are involved in crypto, which is interesting for us to adopt. This will eventually lead to mass adoption as well as a new method of payment not only between users and merchants but also smart devices and smart cities. As more and more payment platforms accept cryptocurrencies, we will see that awareness increase thanks to IoT technology. Eventually, cryptocurrency will become a part of our everyday lives as more and more companies are using it for things like our machine-to-machine or car payments using self-payments. to collect fees, charge fees and other services. Cryptocurrency transactions offer more options for touch-free payments, where our devices will process the terminal transaction and we can keep our cards in our wallets.
Jay Hao, CEO of OKEx:
“PayPal’s move to offering crypto services is extremely optimistic for the space; however, by itself does not signal immediate mass acceptance to them. What we are seeing, which is a very important change, is the normalization of cryptocurrencies like Bitcoin and their legalization by institutions and large household firms. Paypal will start offering these services to US customers, but with around 350 million customers around the world, this is a big step towards gaining more awareness and acceptance. Of course, that doesn’t mean everyone will rush out and buy Bitcoin, but as it gradually gets more acceptance, especially amid the economic crisis in which fiat currencies are on. losing buying power, many participants will naturally come to the market. I think many of the payment giants and tech companies like PayPal are seeing how things are going and they need to join or get through it. I hope that the trend is coming and as we move into 2021, there will be more companies like PayPal, fintech, hedge fund, broker and bank offering crypto services, even if it’s possible ability to buy it or provide custody services. Overall, the outlook is very promising, but we may have to wait a while until we can say that ‘mass adoption’ has been reached. “
Jimmy Song, lecturer at Blockchain Programming:
“The only thing ‘forcing’ Bitcoin’s adoption is the demise of fiat money, which hasn’t happened yet. PayPal’s announcement offers people an additional avenue to buy Bitcoin for store of value or buy altcoins for gambling – that’s it. “
Dead Greenspan, the founder of Quantum Economics:
“Yes. This move could be a huge boon for the adoption of cryptocurrencies in real-world payments. Millions of people who prefer to pay with cryptocurrencies are always looking for new vendors to accept them. PayPal is now effectively adding 22 million sellers to that list as well as opening the door to its more than 300 million active customers.The immediate effects could be diminished, depending on how much. PayPal allows customers to transfer electronic money into and out of its website, however, in the long run, users will understand the enormous advantages of using digital assets and realize that now they can transfer value without any third party. So in a way, PayPal is sowing its own destruction. “
Roger See, executive chairman of Bitcoin.com:
“Of course, a platform with over 300 million active users will help drive the mass adoption of cryptocurrencies. Of the four cryptocurrencies PayPal has added, this is the most bullish for Bitcoin Cash and Litecoin as they are the only two cryptocurrencies that could be used for on-chain payments at the moment. present. “
These citations have been edited and condensed.
The views, opinions and opinions expressed herein are those of the author’s own and do not necessarily reflect or represent the views and opinions of Cointelegraph.