PayPal will now allow cryptocurrency holders to hold their cryptocurrencies in their online PayPal wallet. For those who are not familiar with the term cryptocurrency, we would like to tell you about it in very brief. Cryptocurrencies are a type of digital asset. It is basically a new and digital form of currency that comes secured by Cryptography and it can also work as a medium of exchange. The transactions related to cryptocurrency are kept secured by cryptography.
Cryptocurrencies are getting popular day by day as one can use them as a medium of exchange. Now, coming back to the main topic of the article, PayPal will now be enabling customers to hold cryptocurrency (such as bitcoin)in their online PayPal wallet. Customers can now keep cryptocurrencies in their wallets and shop by using cryptocurrencies as the medium for exchange as there are over a 25+million merchants within its network. So let us know more about this new facility provided by PayPal.
PayPal is a US-based company and it is one of the biggest companies in the United States. In this new service, PayPal will be providing its users access to the cryptocurrencies and this will help in making the cryptocurrencies a popular medium of exchange or payment modes. This new service will help in increasing the use of virtual coins on a global level and build a network for new virtual currencies. The PayPal users in the US will soon (most probably in a few weeks) be allowed to use it as a medium of exchange and they will also be allowed to hold their cryptocurrencies in their PayPal wallet.
And this service is most likely to be made available in some of the other countries by the first half of the year 2021 as well. There are about 346 million active accounts with the company all over the world which processed into Rs. 16,36,195 crores roughly in payments of the second quarter. The company’s share went up to 4% at 1418 GM. The cryptocurrency is considered unstable and this is the reason that cryptocurrencies are struggling to be used as the most popular mode of payment.
Because this unstable nature can be a loss for the seller and also the transaction will be quite slow and expensive than the other already available modes of payment. However, PayPal is assuring and claiming to address this issue as they are stating that traditional currencies (such as the US dollar) will be used for settling the payments. This means that the company will be managing the risks related to the fluctuating nature of the cryptocurrency. PayPal has also gained the first license for the conditional cryptocurrency from the New York State Department of Financial Services.
PayPal will first allow the users the purchases of bitcoin and other popular cryptocurrencies such as Bitcoin, litecoin, etc. and PayPal has teamed up with Paxos Trust Company to offer the service. This new service offered by PayPal is undoubtedly very useful and unique. Now it is to be seen whether the service will work efficiently or not. It would be a great deal if PayPal will be successful in addressing the issues related to the fluctuations and assuring the security of payment through cryptocurrencies. So, let us wait till the time this service comes in force and only then we will be getting the actual idea about its efficiency and usefulness.