Paypal Launches A New Digital Currency Service
According to Reuters, Paypal continues to forge ahead and roll out cryptocurrency services. Paypal Holdings Inc will present United States Paypal users with the ability to transact with cryptocurrency at its host of merchants across the world.
That is an interesting factor as it could help to provide more utility to certain coins that people seek to transact with as opposed to holding.
But will individuals use digital assets, literally, digital assets to transact and pay for ecommerce oriented goods and services? That is a central question that remains. If fundamentally, individuals are looking to obtain assets and hold them because they will appreciate it in value, transacting with them would not make as much sense.
It serves as a fantastic move for Paypal as it shows that it is an innovative company, that it will provide users with value, and stand against younger competitors like Square.
Paypal Will Enable Transactions In Key Digital Assets
Paypal users who hold btc, eth, and bitcoin cash, among other more widely distributed digital coins in Paypal digital wallets, can easily convert digital assets to fiat, make a purchase, and obtain their good or service. That is an interesting step as one wonders how will this play out for Bitpay? Bitpay has been providing these services for a few years now, and a more prominent player like Paypal stepping into the market can be a significant problem for the smaller company.
Paypal and Checkout with Crypto
Customers can use this to transact with over 20 million merchants on the Paypal platform over the next few months. This announcement is a big deal as it shows that a licensed entity with a large network is paving the way for digital asset transactions.
At the same time, while Paypal is offering Checkout with Crypto, individuals may think twice about converting to fiat and transacting with merchants. For instance, when you transact with this service, you may get taxes on your asset sale, then incur the taxes on the excellent purchase as usual, you may also have to deal with other service fees that may occur.
Paypal is a leading provider that is offering such a service. In the meantime, Tesla noted recently it would accept bitcoin as payment and would not convert it to fiat. That is an important distinction as it preserves value in bitcoin as opposed to dollars or other national currencies.
More announcements keep coming in the cryptocurrency sector and it seems like more will be on the way. Stay tuned at Geekinsider for the latest.