PayPal will now allow its customers to buy and sell using cryptocurrency on their accounts. This means that users can now use bitcoin to purchase goods from the 26 million sellers who accept payment through PayPal.
PayPal is planning to roll out buying options in the US within the next few weeks and globally early 2021.
When the news broke, the price of bitcoin rose to break the $12,000 mark. Other cryptocurrencies to be added include Ethereum, Litecoin, and Bitcoin Cash (a spin-off from Bitcoin).
According to PayPal, all of the currencies will be stored in its digital wallet. The company is also planning to provide basic knowledge “to increase consumer understanding and adoption of cryptocurrency”. Due to its rapid change in pricing, they have become a popular investment.
“As part of this offering, PayPal will provide account holders with educational content to help them understand the cryptocurrency ecosystem,” it said.
Other payment firms such as Square’s Cash app and Revolut already offer cryptocurrencies for sale. PayPal has the advantage of having one of the the largest merchants in the world.
To use virtual coins on the website, PayPal will simply convert the cryptocurrency into the relevant national currency. This means the seller will never actually receive the virtual coins, but will cash out with the converted amount is Shillings.
PayPal has assured its users of certainty of value with no increased fees. The New York State Department of Financial Services granted PayPal permission for its operations in the form of a Bitlicence-the first such licence granted.