Skrill has been playing cryptocurrency for a long time, PayPal is playing it safe. This would soon open up to Bitcoin (BTC) and other cryptos, with a PayPal – BTC marriage that could go through Europe. For now, PayPal is mostly content to make announcements, to arouse the hope of cryptophiles; however, society has everything to gain by crossing the threshold of the cryptosphere door.
Cryptos to boost PayPal stocks
In an interview on CNBC, one of the managers at the investment firm Aspirant, Sandi Bragar, revealed the growing interest in PayPal for cryptocurrencies.
According to Bragar, PayPal is currently working for integrate cryptocurrencies into its activity.
Bragar explains that the positive attitude of PayPal towards cryptos is the number one factor giving a positive image of the payments giant in the eyes of investors.
The strategy adopted by PayPal could pay off if, as thought Bragar, the use of cryptocurrencies continues to expand.
The second factor is the impact of the pandemic on the commerce sector as a whole : The vast majority of users make their purchases from their homes and in this context, the digital means of payment industry is popular with investors.
The cryptocurrency could also be one of the main means of payment in the future.
PayPal – cryptos: a link already established
The participation of PayPal to the cryptosphere is not new: many cryptocurrency specialists have been recruited by the company and PayPal was one of the founding members of theLibra Association.
The company had also invested in the blockchain start-up, Cambridge Blockchain which specializes in the management of digital identities.
In July 2020, PayPal would have collaborated with the financial company Paxos, based at New York, for the launch of a cryptocurrency buying and selling service.
Paxos is one of the largest issuers of regulated stablecoins, like the BUSD. Paxos also has a license allowing it to offer conservation services Bitcoins and D’Ethers (ETH) on behalf of institutional investors.
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.
By becoming a payment gateway accepting crypto payments, PayPal could remove many barriers that prevent it from conquering certain high potential markets. For example, it could finally offer a merchant account for many African countries where e-commerce is struggling to develop with the desert of payment methods. It remains to be seen whether PayPal is really prepared to pay the risks inherent in such a transformation.
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