It will soon be possible to use bitcoin, ether, bitcoin cash and litecoin for PayPal payments. An announcement that marks a new stage in the galloping democratization of cryptocurrencies.
Do cryptocurrencies guarantee a place in the sun for the next few years? Far from being adopted by everyone, they have nevertheless just laid two important stones in the edifice of their democratization. Last week, Tesla announced that it now accepts bitcoin payments on US soil. This week, it is the turn of another tech giant from across the Atlantic, PayPal, to advance its pawns.
The payment service plans in the very near future to allow its customers to convert cryptocurrencies held in their wallet into fiat money to pay for their purchases online or at a physical checkout. More precisely, this project called Checkout with Crypto concerns bitcoins, ethers, bitcoins cash and litecoins, and will be valid for Americans initially and for all 29 million e-merchants partners of PayPal in the world. These will be paid in their local currency after a first conversion into dollars by PayPal. There will be no transaction fees, but only one type of currency can be used for each purchase.
PayPal wants to accelerate the democratization of virtual currencies
“This is the first time that you can use cryptocurrency in the same way as a credit or debit card in your PayPal wallet”CEO Dan Schulman told Reuters even before the official announcement. Since October 2020, PayPal has already authorized the purchase, sale and holding of these cryptos and this new step seems to be the logical next step.
The value of bitcoin has continued to swell in recent months, propelled by the growing interest of large technology companies which invest heavily despite the reluctance of some. It must be said that the volatility of bitcoin and digital currencies in general makes their trivialization tricky.
A state of affairs that PayPal intends to transform with this new step taken. “We are at a point of transition where cryptocurrencies move from assets that we buy, hold or sell to a legitimate source of funding to conduct real-world transactions with millions of traders.“, affirms Dan Schulman.
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