Bitcoin soared about 8% on Wednesday because PayPal announced it would open its service to cryptocurrency sales and purchases. Now BTC in PayPal reached an intraday high of $12,817.17. While its previous record is $12,473 in 2020, it was Bitcoin highest level since July 2019. At present, PayPal has 346 million active accounts around the world and processed $222bn in payments in second quarter of the year.
PayPal has joined with Paxos, a New York chartered trust company, to endow with cryptocurrency trading and custodial service like BTC in PayPal. PayPal is also working on its mobile payment service Venmo, to expand it in the first half of 2021. There is good news for US account holders that they will be able to deal in digital coins, including BTC, Ethereum, BTC cash and Litecoin in the coming weeks.
President and chief executive Dan Schulman told Reuters in an interview: “BTC in PayPal hopes the service will persuade global use of vital coins and organize its network for new digital currencies that may be developed by central banks and corporations”.
The California-based payment platform said the launch of its new service would permit customers to buy, hold and sell cryptocurrency directly from their PayPal accounts.
It also appears that users will not be able to use their digital assets outside their PayPal wallet or send crypto to other PayPal users. It means all of your cryptocurrency on PayPal account must stay there. This is the benefit of BTC in PayPal.
According to Investing.com price data, an 8% rise would be BTC’s 20th largest single day boost since October 21, 2019. As renowned by Reuters, PayPal is not the first service to grip cryptocurrency. Jack Dersey-led fintech Square already lets users handle digital resources and so does trading app Robinhood. Still PayPal is absolutely the biggest.
Other mainstream financial names have freshly adopted the previously unseen asset class. Square scooped up 4,709 BTCs for $50 million before in October, saying BTC could turn into “a more ubiquitous currency” in the future.
Novogratz, who has long pushed for widespread implementation of digital currencies, on Wednesday he said in a tweet that it was a thrilling day for cryptocurrency advocates. All banks will be on a competition to service crypto. He said we have crossed the Rubicon People. BTC in PayPal is a golden opportunity for online dealers for their business.
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