PayPal to allow cryptocurrency buying, selling and shopping on its network

[ranman09]

It is great seeing bigger companies now looking at bitcoin and considering it. It seems it became an exchange where people can easily exchange bitcoin and exchange it back. If I read it right, it looks like it will only transact to those merchants that it has checked. Nevertheless, this is great news for bitcoin.

[cyriljundos]

i read that news also that paypal users in the US.
here is the link: paypal.com/us/smarthelp/article/cryptocurrency-on-paypal-faq-faq4398?app=searchAutoComplete
 if the paypal would possibly engage in crypto currencies they will attrack more people to engage in crypto currencies that they can simply invest, hold and sell it to gain profit.

[fillippone]

PayPal shared a few hints on their future strategy in the digital currency services:

PayPal CEO says the payments giant wants to be 'the digital wallet for global CBDCs'

• CEO Dan Schulman reiterated PayPal’s intentions to take a deeper dive into crypto on today’s investors call.
• That includes positioning PayPal’s wallets as “the digital wallet for global CBDCs.”
• Schulman’s comments also pointed towards possible forays into tokenization and smart contract use.
• Schulman also said that PayPal’s crypto service will soon expand to the U.K.

Well, I don’t like CBDC very much, neither I like who proactively propose themselves to help government hurt their citizen trough those bas instruments.  But in the end it’s a our survival, so who am I to blame them?

[SmokerFace]

Happy to hear PayPal is currently supporting cryptographic forms of money, Bitcoin may now turn out to be more popular than previously, however, I actually don't trust in PayPal services.
They're horrendous to utilize, they previously restricted my accounts and I lose loads of cash.

I would prefer not to use PayPal as a wallet account instead will use blockchain technology at least they won't steal my money.
I've doubt they'll charge an extra fee on every altcoin you purchase. Anyways I stopped using PayPal I want to be safer.

[Sithara007]

Not surprised to hear PayPal's statement supporting the CBDCs. They don't have any other option, I am afraid. If they refuse to accept the CBDCs, then they will be closed down in a matter of days. And nowadays we are getting more information on how the governments plan to use the idea of CBDC. Just as I expected, it is the digital version of fiat currency, where the central banks can print money without any limit. There is no difference between CBDC and fiat cash, apart from the format in which it is being stored. No one in their right mind will go for these hyperinflationary shitcoins. I would rather prefer DOGE rather than the CBDC.

[VanDeinsberg12]

It is great seeing bigger companies now looking at bitcoin and considering it. It seems it became an exchange where people can easily exchange bitcoin and exchange it back. If I read it right, it looks like it will only transact to those merchants that it has checked. Nevertheless, this is great news for bitcoin.

It's always like that, make something seems profitable for these corporates, they will throw themselves at it immediately. Same thing like cryptocurrencies more specifically bitcoin. Like for example, PayPal, banning their users who did crypto buying through their platform before bitcoin becomes this recognized, now they see it could generate them tremendous amount of profit they starting to worship it.

[Bitcoinsummoner]

It is great seeing bigger companies now looking at bitcoin and considering it. It seems it became an exchange where people can easily exchange bitcoin and exchange it back. If I read it right, it looks like it will only transact to those merchants that it has checked. Nevertheless, this is great news for bitcoin.

It's always like that, make something seems profitable for these corporates, they will throw themselves at it immediately. Same thing like cryptocurrencies more specifically bitcoin. Like for example, PayPal, banning their users who did crypto buying through their platform before bitcoin becomes this recognized, now they see it could generate them tremendous amount of profit they starting to worship it.

You are right. Paypal was against of cryptocurrency and now they are trying to allow crypto-currency on their gateway and I think soon they will be able to overcome all restrictions and allow it. And I hope boundary of crypto will be enlarged day by day. It is time of crypto and it will remain ongoing.

[Vishnu.Reang]

You are right. Paypal was against of cryptocurrency and now they are trying to allow crypto-currency on their gateway and I think soon they will be able to overcome all restrictions and allow it. And I hope boundary of crypto will be enlarged day by day. It is time of crypto and it will remain ongoing.

PayPal was against cryptocurrency, because earlier it was being considered as a mode of payment. Therefore Bitcoin and the other cryptocurrencies were considered as competitors by PayPal and other payment processors such as Visa. But nowadays due to the high transaction fee very few people are using BTC to make payments. It is mostly being used as an investment asset. Under such circumstances, it doesn't offer any competition to the core business of PayPal. This is probably the reason why they are more receptive to cryptocurrency nowadays.

[Xinarae*]

As technology advances bitcoin is becoming more and brighter. within the meantime, PayPal has entered the cryptocurrency market. this suggests that PayPal users are going to be ready to buy and sell Bitcoin and other cryptocurrencies. thanks to the advantages provided by PayPal, various products are often purchased from sellers through Bitcoin. this may double the demand for crypto. With the adoption of PayPal Crypto, Ethereum, Ripple and Litcoin are now being traded on various exchange platforms within the international market, including some more online virtual currencies.

[Bitcoinsummoner]

But nowadays due to the high transaction fee very few people are using BTC to make payments. It is mostly being used as an investment asset. Under such circumstances, it doesn't offer any competition to the core business of PayPal. This is probably the reason why they are more receptive to cryptocurrency nowadays.

I do not think that people are using bitcoin as an investment only or maximum people are using bitcoin as an investment. Hence maximum people are using it as payment processor. I am mainly user of a bitcoin for taking and sending payment as the fees is lower than any other method eg: paypal, credit card or any other way.

[fillippone]

But nowadays due to the high transaction fee very few people are using BTC to make payments. It is mostly being used as an investment asset. Under such circumstances, it doesn't offer any competition to the core business of PayPal. This is probably the reason why they are more receptive to cryptocurrency nowadays.

I do not think that people are using bitcoin as an investment only or maximum people are using bitcoin as an investment. Hence maximum people are using it as payment processor. I am mainly user of a bitcoin for taking and sending payment as the fees is lower than any other method eg: paypal, credit card or any other way.

I disagree: bitcoin is a bad transactional money. A good MoE has a low volatility, so that prices can be considered stable. Store of Value can coexist with high volatility, if there is a strong positive trend. Medium of exchange can’t.

[Sithara007]

But nowadays due to the high transaction fee very few people are using BTC to make payments. It is mostly being used as an investment asset. Under such circumstances, it doesn't offer any competition to the core business of PayPal. This is probably the reason why they are more receptive to cryptocurrency nowadays.

I do not think that people are using bitcoin as an investment only or maximum people are using bitcoin as an investment. Hence maximum people are using it as payment processor. I am mainly user of a bitcoin for taking and sending payment as the fees is lower than any other method eg: paypal, credit card or any other way.

I disagree: bitcoin is a bad transactional money. A good MoE has a low volatility, so that prices can be considered stable. Store of Value can coexist with high volatility, if there is a strong positive trend. Medium of exchange can’t.

Have to agree with fillippone here. If you are an investor then you are not much bothered about the volatility. Because the long term trends are positive. But that is not the case when you accept or pay with Bitcoin. The volatility in exchange rates and the delay in getting confirmations can negatively impact your business. There is no readymade solution in place now. The miners are not going to increase the block size, so we are stuck with high fees for the near future.

[fillippone]

As I said in an earlier post, PayPal has a long term business plan on cryptos, with subsequent steps in the direction of an all-round service for crypto holders.

Today a rumour surfaced on the next one:

PayPal to Buy Crypto Custody Firm Curv: Sources

PayPal is said to be in the process of buying Curv, a technology firm that powers the secure storage of cryptocurrency, according to three sources familiar with the situation.

Israeli news outlet Calcalist reported Tuesday that Curv was being sold for between $200 million and $300 million, without naming the buyer.

“PayPal is buying Curv for $500 million,” a source from within the digital asset custody space told CoinDesk on Monday. “From where I’m hearing it, I’m pretty sure it’s true.”

PayPal cannot risk CURV to grow too much. Better kill a competitor in the cradle.

[bryant.coleman]

The trends for long term is positive till now. But who knows it will keep this positive trends for long term or will there be negative trends for long term investment. And at the time of investment price of it may make loss in this few days.

It is debatable. Bitcoin first came in to existence in 2009. Ever since then, long term investment was never a loss making exercise. If you were holding Bitcoin for more than three years, then at no point between 2009 and 2021 you will be in a loss. Now I can't make any guarantee about the future, but I am hopeful that what has happened during the last 12 years will repeat for another decade or so.

[fillippone]

The trends for long term is positive till now. But who knows it will keep this positive trends for long term or will there be negative trends for long term investment. And at the time of investment price of it may make loss in this few days.

It is debatable. Bitcoin first came in to existence in 2009. Ever since then, long term investment was never a loss making exercise. If you were holding Bitcoin for more than three years, then at no point between 2009 and 2021 you will be in a loss. Now I can't make any guarantee about the future, but I am hopeful that what has happened during the last 12 years will repeat for another decade or so.

There is a model that suggests this is something more than hope:

Stock-to-Flow Model: Modeling Bitcoin's Value with Scarcity

This model has been working since before the first halving, I can't see it breaking before a couple of halvings.

[fillippone]

So, it finally happened: PayPal allows his user to spend their cryptocurrencies allowing them to move the coins outside their wallets.

Exclusive: PayPal launches crypto checkout service


[

LONDON (Reuters) - PayPal Holdings Inc will announce later on Tuesday that it has started allowing U.S. consumers to use their cryptocurrency holdings to pay at millions of its online merchants globally, a move that could significantly boost use of digital assets in everyday commerce.

In the linked article, more details.

Well, this development does not get us unprepared: we saw it coming since day one. That you'd have been an insane effort putting all the machines up and running allowing the subscribers only hold their coins. Of course, PayPal wants to sell many services, and probably I suspect, they also see some fees from this.
So they used their KYC/AML proficiency to build a "walled garden" for their clients to play in: the client is happy because do not get scammed, and the bank herself is happy because probably they are going answer the regulators only about what happens inside the garden.

[Sithara007]

I am surprised that this news didn't resulted in a larger spike in exchange rates. There was a small rally, but that amounted to only around 3%. I thought with such a ground breaking news, the exchange rate could at least rally some 10% to 20%. Perhaps the Bitcoin puritans are still not happy with the fact that PayPal is converting Bitcoin to fiat currency before the payment. For me, that doesn't matter much. Someone needs to do the conversion. If PayPal is not doing it, then the merchants will be forced to spend their time and effort to convert their BTC revenues.

[fillippone]

A couple of Updates on PayPal:


The first is an update on how the Crypto adoption plan is unfolding for Paypal. They have beaten every anticipated volumes:

PayPal CEO: Demand for Cryptocurrency Much Higher Than Expected

PayPal CEO Dan Schulman reveals that demand for the company's crypto services has exceeded its expectations 'multiple-fold.'

In brief

• PayPal CEO Dan Schulman revealed that user demand for cryptocurrencies on the platform is even higher than anticipated.
• Schulman noted that the coronavirus pandemic has greatly accelerated the digitalization of payments across the globe.

The second update is the fact PayPal also serves as another on-ramp for Coinbase users.

Coinbase now lets US users pay for cryptocurrency through a PayPal account

Starting today, PayPal users in the US can link their accounts to Coinbase to make it easier to buy digital currencies like Bitcoin, Ethereum and Litecoin. Previously, funding those purchases often meant using a debit card or a more time-consuming method like a wire transfer. With today's update, Coinbase says you can fund your purchases "instantly." It also means there's one less platform with your debit and bank account information.

I think this partnership is beneficial for both firms: COinbase can make the funding of their accounts even simpler, quicker and maybe cheaper, while PayPal can try to intercept some little percentage of these users, maybe the less sophisticated ones, with their newly launched services.

Good news!

[fillippone]

As we had anticipated since the start of this thread, finally PayPal is scaling up the Bitcoin strategy:


PayPal to Let Users Send Bitcoin Off PayPal

Speaking at Consensus on Wednesday afternoon, PayPal's head of blockchain and crypto, Jose Fernandez da Ponte said the company will be adding support for third-party wallettransfers—meaning that PayPal and Venmo users will be able to send Bitcoin not only to others on those platforms, but to services like Coinbase and to outside crypto wallets as well.

Da Ponte added an interesting remark:

“We want to make it as open as possible," said Fernandez da Ponte, "and we want to give choice to our consumers."

This is what we asked for.

For them, it could be a potential source of headaches, but it's not or fault, but regulators.

[Sithara007]

^^^ This has been one of the major complaints from the PayPal users. I had posted a few times in the past that PayPal has already stated that they will make more features available on their Bitcoin platform in the coming months, but many of the users here refused to believe that. Anyway, this move will be hopefully welcomed by a majority of the users. However, as fillippone mentioned, now the regulators can target PayPal claiming that they are aiding in money laundering. On top of that if some of the coins that were purchased using PayPal ends up in dark markets, then the authorities can blame PayPal. They need to be careful with this step.