- All eligible PayPal customers in the US can buy, sell and hold Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.
- Investors will be able to buy up to $20,000 weekly with PayPal’s crypto-currency service.
The payment giant PayPal has lifted its waiting list for its crypto service. Starting Nov. 12, PayPal customers based in the United States will be able to use their accounts to buy, sell and maintain Bitcoin, Ethereum, Litecoin and Bitcoin Cash. In addition, the company announced that its customers will be able to buy up to $20,000 a week in cryptocurrencies.
The payment company announced the launch of its crypto service on October 21, surprising the crypto space. According to the press release at that time, PayPal expects to incorporate CBDCs and digital currencies issued by private entities. The company has partnered with Paxos Trust for the custody of its crypto assets.
Since the launch of the services, few accounts could access the cryptocurrencies with limitations in their trade. However, in an update for investors, the company revealed that there was great interest in the service. Therefore, it raised the initial purchase limit from $10,000 to $15,000. The steady increase in this amount indicates increased interest from payment processor users.
We are pleased to announce that starting today, all of our eligible US customers can now buy, hold and sell #Cryptocurrency directly from their PayPal accounts. We’ve also increased our weekly purchase limit to $20K. Learn more: https://t.co/5yrpNOuA6y pic.twitter.com/2nZHm9qCNI
— PayPal (@PayPal) November 12, 2020
PayPal brings Bitcoin to the masses
PayPal has recognized that the financial world is moving towards the adoption of cryptocurrencies and digital assets. Therefore, they seek to meet the growing demand for more than 340 million customers worldwide. PayPal’s crypto services are expected to expand to Venmo and its international customers in the first half of 2021.
In that sense, the co-founder and CTO of the company Casa, Jameson Lopp, has pointed out a bullish aspect for the crypto market. As part of the deployment of its crypto services, PayPal has obtained a Bitlicense in New York that requires its crypto custodian partner to maintain “real Bitcoin” at a 1-to-1 parity for each BTC purchased on the platform. This applies to all cryptocurrencies offered.
In other words, PayPal is legally required to hold the same amount in cryptocurrencies that its customers buy. This could lead to a liquidity crisis, as members of the crypto community have pointed out. The positive impact on the price of Bitcoin and the rest of the cryptocurrencies offered by PayPal could be enormous.
PayPal’s announcement is one of the reasons attributed to Bitcoin’s rally, although the cryptocurrency already came with a bullish trajectory that has lasted until now. Analysts are optimistic about a continuation of the rally. At the time of publication, Bitcoin’s price stands at $16,269 with gains of 2.89% in the last 24 hours.