PayPal Holdings Inc. (NASDAQ:PYPL) is the latest payment giant to join the cryptocurrency frenzy. The payment network has confirmed plans to make it possible for people to hold, buy, and sell digital currencies on its online wallet. Likewise, users will be able to shop using cryptocurrencies in more than 20 million merchant shops in the network.
PayPal Crypto Plans
The company has already secured a conditional cryptocurrency license from the New York State Department of financial services. PayPal has been working with central banks to find ways that the emerging currencies can be used in the mainstream sector.
PayPal has confirmed U.S account holders will soon be able to buy, sell, and hold cryptocurrencies in their PayPal Wallet. Plans are also underway to expand the cryptocurrency offerings into peer to peer payment app Venmo and make it available in other countries.
The payment giant joins Square Inc. (NYSE: SQA), which has already closed a $50 million investment in Bitcoin. Trading app Robinhood has also made it possible for people to buy and sell cryptocurrencies with ease.
PayPal's cryptocurrency integration is noteworthy, given its sheer size. The company boasts close to 340 million active accounts worldwide and processes close to $222 billion in payments every quarter. Likewise, the addition of cryptocurrencies would go a long way in enhancing mainstream adoption worldwide.
Mainstream Crypto Adoption
While virtual currencies of the likes of Bitcoin have been around for more than a decade, they have struggled to establish themselves as widely used forms of payments. Mainstream adoption could go a long way in addressing the long-running volatility issue that has only made them attractive to speculators.
PayPal is already working on a system that it hopes will help address some of the issues that have prevented cryptocurrencies such as Bitcoins. Some of the issues that the company needs to address include the rampant crypto value fluctuation as well as slower transactions.
PayPal push into the cryptocurrency space comes when central banks are increasingly coming up with digital versions of their fiat currencies.