In a recent interview with CNBC, Dan Schulman, CEO of PayPal has stated that “Early next year, we’re going to allow cryptocurrencies to be a funding source for any transaction happening on all 28 million of our merchants.”
One of the main criticisms about PayPal and the support for cryptocurrencies is that it will most likely not allow external deposits or withdrawals of crypto. However, the platform would be required to back its database with actual holdings. The only caveat is that PayPal would be moving the crypto within.
Either way, the integration of cryptocurrencies with PayPal will drive the market to new highs in the near future. It will also help with the scalability of blockchain which is still an issue for many cryptocurrencies including Bitcoin.
The flagship cryptocurrency is currently trading at $18,349 after hitting a peak of $18,965 on November 21. Despite several mini crashes, Bitcoin has recovered strongly and aims to hit $19,000 in the short-term.
PayPal could be the initial spark of a new colossal bull rally
It’s clear that Dan Schulman thinks Bitcoin is a valuable asset, and he actually owns some coins as well. Schulman stated that the value of cryptocurrencies comes from trust and the issues with fiat money. The CEO believes most people simply don’t want to handle cash anymore, something that is happening in the financial world as well.
One of the main things that PayPal looked for when debating whether to support cryptocurrencies or not was their utility in the real world. Allowing customers to use cryptos as a funding source is a significant booster to the utility of digital assets.
When a customer buys Bitcoin or any other cryptocurrency through PayPal and wants to make a transaction with a merchant, the platform will automatically calculate how much of that cryptocurrency the user needs to pay -avoiding any potential volatility issues.
PayPal is one of the largest online payment systems in the world founded by Elon Musk and others. The support of Bitcoin and other digital assets will most certainly benefit the entire cryptocurrency market in the long-term.