This archive report was first published on 24 June 2020.
On June 24, 2020, news broke that PayPal was planning to venture into the cryptocurrency market, allowing users to buy and sell digital assets directly through its platform.
The move, which is expected to be a major game-changer in the fintech industry, comes as the company looks to expand its services and stay ahead of the competition.
PayPal has over 325 million users, and the news of its plans sent its shares rallying by 1.2%, while Bitcoin surged to $9,700.
Currently, the financial tech company only allows its users to withdraw funds from cryptocurrency exchanges like Coinbase, but with the new plans, users will be able to store and manage their cryptocurrency directly within the PayPal platform.
It remains to be seen what assets will be listed and the extent of the offered functionality for both Venmo and PayPal, but one thing is certain - this move is a significant step towards mainstream adoption of cryptocurrency.
PayPal has been cautious about cryptocurrency in the past, listing potential risks associated with blockchain and virtual currencies as a possible risk factor that may negatively impact the company.
However, it appears that the company has decided to take a proactive approach to mitigate these risks and capitalize on the growing demand for cryptocurrency services.
