PayPal will soon let US users buy, sell and shop with cryptocurrency

Started by Prem Kumar, Oct 22, 2020, 01:05 PM

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Prem Kumar

PayPal will soon let US users buy, sell and shop with cryptocurrency

The company plans to bring digital currencies to Venmo next year too.

PayPal is leaping into the cryptocurrency market, Starting in the next few weeks, users in the US can buy and sell bitcoin and several other digital currencies on the platform.

Early next year, you'll be able to use cryptocurrency to pay for goods at more than 26 million merchants who use PayPal. They won't receive payment in bitcoin, ethereum, bitcoin cash or litecoin, though. PayPal will instead settle payments in fiat currencies, such as the dollar.

The company will provide information to help account holders understand blockchain tech, the digital currency ecosystem and "the risks and opportunities related to investing in cryptocurrency." It won't charge users service fees to buy or sell cryptocurrency through the end of the year, and you won't have to pay any fees for holding it in your PayPal wallet.

PayPal also plans to bring cryptocurrency to Venmo in the first half of 2021. It hopes to allow users in some other countries to buy and sell cryptocurrency next year too. The New York State Department of Financial Services has granted its first conditional "Bitlicense" to PayPal.

The company's CEO Dan Schulman told Reuters that PayPal hopes the move will encourage global uptake of cryptocurrency. The service is also preparing for central banks and corporations to set up their own virtual currencies. PayPal cited a survey of central banks suggesting a tenth of them are aiming to roll out digital versions of their currencies within the next few years.

PayPal is joining other major digital payment companies such as Square in supporting cryptocurrency. However, PayPal did note that virtual currencies can be volatile, while transactions can be slower and more expensive than with other payment methods. So, it's probably worth exercising some caution when it comes to dealing in cryptocurrency on PayPal (or anywhere else).



They still have this option in their app even though the crypto exchange rates have been rather volatile lately. I'm not sure whether I want to mess with Bitcoin anymore, but Ethereum looks promising. It's used in many programs now, and its importance has grown, especially after the appearance of NFTs.
I prefer not to make haste decisions and wait for some more experienced traders from platforms described on Dough Roller, like eToro, to make their move. It's better to know what professionals think and then decide whether to follow them or not. It's especially helpful for beginners who yet have to learn to analyze the market.