On June 22, reports suggested that the online payment giant PayPal Holdings is planning to unleash cryptocurrency transactions to its users in the next several months.
According to a CoinDesk report, three sources have confirmed that plans are in the works to offer direct buying and selling of cryptocurrency to users of PayPal and Venmo. The types and amount of cryptocurrencies that will be available are yet to be revealed.
“They are going to have some sort of a built-in wallet functionality so you can store it there,” said one of the three unnamed sources, adding that he expects the company “would be working with multiple exchanges to source liquidity.”
When reached for comment, PayPal declined to address the rumors. In terms of timing, another source told CoinDesk the service might become available “in the next three months or maybe sooner.”
PayPal (which owns Venmo) has held a stance of being pro blockchain but not fully vested in cryptocurrency. If these reports are true, the payment company will have a great impact on the crypto ecosystem.
PayPal Cryptocurrency Adoption Impact on Crypto Ecosystem
PayPal reportedly boasts a client base of over 320 million people. The e-commerce pioneer has supported the bitcoin ecosystem in the past through partnerships with major payment processors. However, it has stopped short of actually integrating direct payment services for cryptocurrency. The company’s short-lived affiliation with the Facebook Libra project was the recent step showing interest in the direct involvement of crypto.
The move to direct transactions will bolster cryptocurrency user numbers once introduced to their large client base. Increased speed and reliability of transactions is bound to attract PayPal users to switch to cryptocurrency. Allowing its merchants to accept cryptocurrency as a form of payment will ultimately increase coin liquidity. Support from such a huge platform with a diverse client base can potentially increase cryptocurrency stability. PayPal creating a manipulation resistant way to buy and sell a cryptocurrency will make the industry more lucrative for traders.
One of the main reasons PayPal has been wary of adopting cryptocurrency is the volatility of the market. However, if they can manage to increase their liquidity, they can have a more developed and precise price formation. What better way to increase crypto traffic than to promote it to their client base?
If the rumors prove to be true, the crypto ecosystem is about to get a boost of new users. The PayPal client base is vast and diverse enough to breathe new life to the industry. Now we have to play the game of wait and see if PayPal will take this next step in crypto adoption.