PayPal will allow you to trade and buy cryptocurrencies.
This has been reported by Reuters citing an official company memo.
The company has obtained a conditional cryptocurrency license from the New York State Department of Financial Services, thanks to which it will initially allow purchases of bitcoin, ethereum, bitcoin cash and litecoin, thanks to a collaboration with Paxos Trust Company.
The conditional license allows new companies to comply thanks to a collaboration with an authorized licensee while they wait to obtain their own.
Paxos Crypto Brokerage, a recently launched API-based brokerage service by Paxos, will presumably be used for trading, which will also deal with regulatory and technological aspects.
PayPal, purchases with cryptocurrencies
The article also reveals that, from the beginning of 2021, users of the popular payment service will also be able to use cryptocurrencies to make purchases to the 26 million merchants who accept payments through PayPal.
Cryptocurrency payments will be settled using fiat currencies, such as the US dollar, so merchants will not receive payments in crypto, but directly in fiat currency.
According to the president and CEO of the company, Dan Schulman, this move should encourage the global use of virtual currencies and it will prepare the company's tools to support the new digital currencies to be launched by central banks and corporations.
The new service will initially be available to US account holders in the coming weeks, and in the first half of 2021, it will roll out to other countries and on Venmo.
PayPal has a total of 346 million active accounts worldwide and, in the second quarter of 2020, it processed payments totaling $ 222 billion.
The news had already been in the air for some time and it has generated a slight increase in the price of bitcoin, which had already grown a lot yesterday.
In fact, the new functionality will allow hundreds of millions of users to access the cryptocurrency market in a very simple way and, above all, without having to perform additional KYC procedures, usually slow and inconvenient.
Given that, according to a recent study, there are currently around 100 million holders of cryptocurrencies in the world, the fact that these assets are suddenly made available to investors nearly 350 million PayPal users could rapidly increase this number.