Same as last November, the news about the PSP giant betting on crypto gave Bitcoin a considerable boost. After the announcement, the coin’s price soared, reaching $59.000 for the first time in its history. Indeed, with such a large and trusted company backing it, Bitcoin gets the support it needs now to thrive; the trust rubs off, pushing the crypto closer to the mainstream and speeding up its adoption.
Another upside of the integration is that it makes cryptocurrencies more accessible for the masses. Now anyone who has a PayPal account can get their first crypto experience in the same app: you’ll just need to undergo a quick KYC procedure.
What about PayPal? One of the pioneers in crypto adoption, the company is staying true to its progressive policy. There are probably a few reasons for that, and one of them is increasing revenue: crypto has proven to be a profitable niche for the payment system. By now, PayPal has doubled the original weekly purchase limits, making it $20.000 instead of $10.000, and the demand is likely to grow: Dan Schulman, PayPal CEO, expects the new service to reach $200.000.000 transaction volume within months.
Besides that, at this point, betting on the coin becomes a win for both. As both PayPal and crypto are now leveraged to each other, Bitcoin’s growth recently triggered the 10 days winning streak for PYPL stock.
So is it just a wish to get more profit and a certain reputation that is driving crypto adoption by PayPal? Not really, according to the company’s own statement. In part, this integration is a sandbox where PayPal is exploring the prospect of working with CDBCs in the future. I’ll quote Schulman again, “We are eager to work with central banks and regulators and contribute to shaping the role digital currencies will play in the future of global finance and commerce”.
What do you think? Who of the big players will integrate cryptocurrencies next?