There is no doubt that PayPal is entering the cryptocurrency industry on a large scale.
On October 21st, payment giant PayPal officially announced its entry into the cryptocurrency market, allowing customers to use the company's online wallet to buy, sell and hold bitcoin and other cryptocurrencies. PayPal said in a statement that from early 2021, users of the company will also be able to use cryptocurrency to shop at 26 million merchants on its network.
After the release of PayPal's support for Bitcoin's interest rate, it triggered a strong rise in Bitcoin. The price of BTC exceeded $13,000, setting a new high since August 2019. Because the market generally believes that PayPal will bring a huge number of new users to BTC. According to Glassnode data, Bitcoin currently has more than 187 million users, while PayPal has 487 million users.
PayPal obviously does not stop there.
On October 23, Bloomberg quoted people familiar with the matter as saying that PayPal is seeking to acquire Bitcoin custody company BitGo. People familiar with the matter said that PayPal and BitGo have begun to communicate related matters, and the transaction may be concluded within a few weeks. But negotiations may still fail, and PayPal may choose to buy other targets. In this regard, BitGo and PayPal declined to comment.
Public information shows that BitGo raised 58.5 million US dollars in 2018, with a valuation of 170 million US dollars. BitGo currently supports 250 cryptocurrency custody.
The partner that provides crypto asset services to PayPal this time comes from Paxos. Through the crypto asset custody and transaction services provided by Paxos for PayPal, PayPal allows American currency friends to buy, hold and sell crypto assets directly from the PayPal e-wallet. Through cooperation with Paxos, Paypal obtained a "conditional" BitLicense license from the New York Department of Financial Services (NYDFS) on October 20.
It is reported that the Bitlicense license was launched by the New York Financial Services Department (NYDFS) in 2015 and is the most difficult cryptocurrency regulatory license in the United States. Currently, only 24 companies have been issued this license. Based on this, the New York regulatory agency introduced a "conditional" BitLicense license as a temporary solution. To obtain such a license, the applicant company must cooperate with a company that has obtained a complete BitLicense license.
PayPal stated in the statement that users are currently limited to holding or buying cryptocurrency on Paypal. The cryptocurrency payment function will be unveiled as soon as 2021. Merchants can accept users' cryptocurrency payments through PayPal, but merchants will still receive fiat currency. PayPal will handle the intermediate exchange rate calculation and currency conversion process.
The price of Bitcoin is bound to rise, rising to $20,000 by the end of the year, and acquisition is not nonsense. Bitcoin's firm footing at $13,000 also hints at a breakthrough. Not only that, a large number of currency friends and institutions buy back Bitcoin to welcome Bitcoin. There are even a large number of currency friends entering the miner industry. After all, the current currency price has reached a new high, whether it is the cost of repurchasing bitcoin now or whether it can really break through in the future. Have become the reason why most people enter the miners.
