- PayPal executives have confirmed that Bitcoin and Ethereum will be integrated into the digital wallet globally in the first quarter of 2021.
- PayPal first wants to gain experience with cryptocurrencies before the integration of digital central bank currencies (CBDC) is pushed.
PayPal provided a few days ago for a hype on the crypto market, when the payment giant announced to integrate Bitcoin, Ethereum and further cryptocurrencies to the digital wallet. In a new investor update the enterprise provided further details about the exact roadmap of the next months.
Cryptocurrencies in spring 2021, CBDCs to follow
As part of the update, Dan Shulman, CEO of PayPal, said that the financial world is undergoing a transition from physical to digital currencies and that PayPal will play a critical role in this revolution. Various cryptocurrencies and fin-tech projects are forcing traditional providers such as SWIFT and PayPal to question the existing infrastructure and offer new payment solutions to their customers, according to Shulman.
Shulman is firmly convinced that the traditional financial structure has had its day and that the time is ripe for a revolution and that PayPal can and will promote future development due to its reputation and innovative power:
I do think that our platform and all the new digital infrastructure that we’re putting in place right now can help make that management and movement of money more efficient, less expensive, and faster.
The CEO went on to describe that the demand for cryptoservices within the company has risen sharply and by the end of the year all U.S. citizens will have access to cryptocurrencies via PayPal. The expansion of services for the remaining customers outside the United States of America is expected to follow in the first quarter of next year.
Shulman emphasized that many users look into their wallet several times a day to closely monitor the performance of their assets:
We’re seeing people who have already bought crypto open their wallet several times a day to check out what’s happening with their crypto investments.
Due to the great interest PayPal will increase the weekly purchase limit from $10.000 to $15.000. PayPal also plans to integrate cryptocurrencies into the digital wallet Venmo, which already has 300 million users worldwide. This will bring 346 million users into contact with cryptocurrencies via PayPal and 300 million more via Venmo.
PayPal users can also use cryptocurrencies with over 28 million connected merchants in the payment network. In a new podcast by Anthony Pompliano with Reuters correspondent Anna Irrera, who also wrote the headlines for PayPal’s plan to enter the crypto market, Irrera explained that PayPal is also preparing to integrate CBCDs.
Gain experience with cryptocurrencies before CBDCs come
The start with decentralized cryptocurrencies serves according to Irrera among other things also to gain experience with these new assets. According to PayPal CEO Shulman, it is not a question of whether CBDCs will come, but only when. The company would therefore like to play a decisive role in shaping further developments in this area and further promote adaptation.