Buying, selling and storing cryptocurrencies is now possible on PayPal, and the company’s future goals include offering users the ability to make purchases through this payment method starting in 2021.
Dan Schulman, the company’s chief executive, told Reuters who hopes that the announced initiative will encourage the global use of virtual currencies. The action, he says, seeks to structure its own transaction network before central banks take the plunge.
Despite facing competitors like Square and the Robinhood app, the giant is, in the industry, the biggest of all – and, although Bitcoin, Ethereum, Bitcoin Cash and Litecoin are among the units initially supported, a bucket of cold water can be discouraging those who wait for the moment when they will use them in everyday purchases: everything will be settled in fiat currencies, such as the US dollar, suggesting that PayPal itself will manage market fluctuations.
What does that mean?
Basically, merchants will not receive cryptocurrencies, but ordinary money from the sale of these assets. In addition, nothing can leave the user’s own wallet, which, for many, “ends” with the purpose of disseminating the digital modality.
At least 26 million sellers and 346 million active accounts are part of the platform, which, in the second quarter of this year alone, handled at least US $ 222 billion.
Schulman explains: “We are doing this in a fundamentally different way to ensure that we offer maximum security to our traders.” Whether the novelty will really win an even larger audience? Well, we need to wait.