Since the Bitcoin integration, PayPal has significantly increased its BTC stocks. In view of the upcoming service expansion for merchants, the payment service provider is likely to maintain its aggressive purchasing policy.
According to many market observers, the payment provider PayPal is not entirely innocent of the current Bitcoin boom. Now PayPal CEO Dan Schulman has given an interview to the Canadian channel CNBC and gave some insights into the company philosophy regarding crypto currencies. In the interview Schulman pointed out the ongoing corona virus pandemic. As a result, the dependence on cash has decreased by 40 to 70 percent. Sooner or later, central banks would switch over and convert physical fiat money into digital counterparts. PayPal would of course draw the appropriate consequences from this.
The payment service provider will enable the use of crypto currencies as a source of financing for 28 million merchants on its platform, Schulman said.
An important step we have taken is not only that PayPal makes it easy to buy, sell and hold crypto currencies. Early next year, we will allow crypto-currencies as a funding source for all transactions of all 28 million of our merchants. This will greatly increase the value of crypto-currencies.
Dan Schulman, PayPal CEO
PayPal and Cash App with high Bitcoin purchases
Schulman then pointed out an eminently important component of the recipe for success of crypto-currencies. He said that the key to sustainable success lies in cooperation with the regulatory authorities. PayPal already introduced its crypto function in the United States earlier this month, just a few weeks after the announcement of the integration. From the beginning of next year, the service should then be available worldwide.
PayPal has a total of 360 million active users. The company recently caused a stir by buying Bitcoin (BTC) and other crypto currencies on a large scale. According to asset manager Pantera Capital, the payment service provider currently incorporates almost 70 percent of all new Bitcoin. PayPal’s competitor Square also made substantial purchases of Bitcoin via the Cash App. The high demand and supply shortages are some of the main reasons for the current rapid rise in Bitcoin’s price.
The provider of PayPal’s crypto infrastructure is Paxos. With Stablecoin PAX, the company has already launched its own crypto currency, and with itBit, a crypto exchange has also been launched. Through Paxos, PayPal has also received the first conditional license for virtual currencies from the New York State Department of Financial Services. If other, larger financial institutions follow the example of PayPal and Cash App, the Bitcoin offer is likely to become even scarcer.