Coindesk reported on it first just a few days ago as a rumor, but it really does seem that Paypal will be following through with enabling customers to withdrawal their BTC, LTC, BCH and ETH from their Paypal accounts.
In Q1 2021, Paypal handled around 285 billion USD of transactions on their platform. With this kind of money moving around, one can only wonder how much of it may find its way into the crypto world if being offered a seamless transition. With such a large company enabling cryptocurrency transactions, we should look at what this may mean for the ecosystem as a whole.
Increased Trust
If this giant money moving company is willing to put enough trust into the crypto world that they will not only offer the purchase of, but also the withdrawal of crypto assets the bar is being set much higher than that of the past.
Learning about cryptocurrency, I heard of exchanges such as BitInstant or Mount Gox. BitInstant was run by a very young Charlie Shrem, who ended up in jail for being negligent in enforcing anti-money laundering on the site and allowing for a cash flow into the silk road. Mount Gox was formerly a magic card game fandom site that became the custodian of over 70% of the worlds Bitcoin at one point.
Going from experiment and uncertainty to a trusted name such as Paypal or Coinbase has been and will continue to be enormous for bringing in big money investors to the ecosystem. With a proven track record and governmentally enforced clarity and regulations, Paypal may not be the crypto exchange of the future, but it may help to bring on a lot of people who have been sidelined out of fear that they might get screwed over.
Seamless Purchases
There are over 392 million accounts on Paypal. My guess would be that not every one of those users has a cryptocurrency account on an exchange or a cryptocurrency wallet of any kind. Now they will! With one click, they enable their accounts to buy, store and transfer cryptocurrency. The ease of use will be incredibly helpful in onboarding new people into cryptocurrency. It'll be a baby step of course, but I expect a lot of documentation to come out as well to help people answer questions they may have regarding what they are purchasing.
Increased Volume
With more people being able to purchase and store crypto without the need to sign up for a different account than the Paypal they already have, I predict we will see an increase in the amount of volume in crypto markets. It won't be a massive boom all at once, but this is another product that will be lowering the barriers to entry and providing a direct use case for cryptocurrency. With the established nature of the platform, I think that Paypal will be leading the way for US-based financial apps to really begin integrating and rewarding cryptocurrency users at a high rate. With the growing popularity of the market, financial platforms will be incentivized to offer benefits on their platforms to attract new users and increase the amount of usage that existing users get out of their applications.
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Good news for PayPal users for sure, and one that I was expecting to come about eventually. They did acquire a crypto payments or custodial (cant member) company a while back so was just a matter of time.
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Exactly, I think there will be a big flood of groups like Venmo and other monetary custodians doing the same. Cashapp/Squarecash had first mover advantage on this but they only allow for BTC transactions. It'll be a big few weeks as more companies play catch up
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A step forward towards more people embracing it. Anything that makes it easier for people.
Is that any way to convert from crypto to fiat on PayPal? I havent looked at the platform.
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I think that right now, they allow users to switch from crypto to fiat to make purchases. However, they don't yet have a deposit method for cryptos, I think that is coming along with the withdrawal implementation.
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if they do this, it will be the easiest way for me to move in and out from crypto. if they don't decide that they hate my country and forbid it :D it would not be the first time...
Now this one is so loud. And you are not far from the truth. If Paypal decides to not hate most of our countries because mine is inclusive, then it will make it easier for us to deal with our crypto anyhow we want it.
well paypal did not include my country for a long time and then we waited for 3-4 years to be able to withdraw money (i could only use it to pay). but again i am pretty limited in buying crypto easy options so if they make moving it to wallets i would most probably use it.
I understand because my country also had the same restrictions and a lot of courses had to be sold to anyone who wishes to get a Paypal account without breaking the rules
Affiliate marketer amass a lot of profits from these courses
Exactly! What country are you from?
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serbia
So now that the initial speculations from Coindex has turned to be the truth, we are positive that a lot of benefits will come out of Paypal's decision concerning crypto payments and withdrawal.
As you said, there will be a lot of people hopping in because of the trust that will form as a result of this and we will be able to do as many transactions as possible with just our paypal account
It is a huge momentum swing for the cryptocurrency market
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I agree
I wonder if this will be a danger to Coinbase because they are the easiest way to change fiat into crypto. Well I am not sure if they have everything working as seamless though.
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Coinbase is still offering way more currencies to purchase. That's the difference maker IMO
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More mass adoption will make the crypto industry to keep growing
Yeah the mass adoption is actually necessary because it will cause increase in demands which will make the crypto grow.