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PayPal adopts cryptocurrency as a funding option

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PayPal opens the network to cryptocurrency. Allowing customers to buy and sell Bitcoin and other virtual currencies.

In the past few years, the way to fund your online casino account has changed a lot. From simple and traditional methods to quick and efficient crypto methods.

PayPal is no unfamiliar name in the industry and has been making it easier for many to transfer funds digitally for quite some time.

Now the payment giant has taken a dive into the world of bitcoin and smart contracts.

PayPal explores cryptocurrency

The company announced they will incorporate cryptocurrency allowing all customers to buy, sell and hold tokens in digital wallets.

There are those that believe this move can shake up the online gambling sector along with mainstream e-commerce. Allowing PayPal users to use Bitcoin, Bitcoin Cash, Ethereum and Litecoin for purchases. PayPal is planning on increasing cryptocurrencies' ability by making it available to over 26 million merchants worldwide.

All the services will roll out on Venmo, a PayPal company, within the next few weeks and then to other geographical areas it the first half of 2021. According to statistics, the news resulted in an increase of about 15% of BTC price.

Cryptocurrency market

Cryptocurrencies are considered somewhat of a niche market due to the rapidly changing prices they experience compared to traditional currencies. It's partly why they are so popular among a number of investors.

PayPal wants to increase the consumer understanding and adoption of cryptocurrency. Account-holders will get basic educational content that gives an understanding of the cryptocurrency ecosystem.

The author of 'Attack of the 50 Foot Blockchain', David Gerard, believes that PayPal is describing a Crypto day-trading market. Gerard exclaimed that he is at a loss as to who the market is for PayPal as a Crypto-Exchange.

He compared it to playing the stock market using Bitcoin. With its volatile and less regulated nature, it is essentially like gambling on penny stocks. According to Gerard, there are plenty of big players that manipulate the price and ordinary people have a risk of losing everything. Gerard is one of the many sceptics who don't have much faith in the success in this market beyond existing crypto holders.

A well thought out system

PayPal is not the first to offer the sale of cryptocurrency. Payment firms such as Square's Cash app and Revolut have done it too. The difference being that PayPal is one of the largest networks in the world.

In terms of using the virtual coins, PayPal will be converting the cryptocurrency into the national currency. Thus, the company that getting paid will never actually receive virtual coins, only the correct amount of funds.

According to PayPal with this system, there is a certainty of value and no incremental fees. Using Bitcoin to pay for purchases from ordinary merchants will only launch in early 2021.

Licensing issue

One of the many things that have always been a top concern regarding cryptocurrency is it being unregulated.

Other issues include highly volatile prices and less traceable payments.

With this new move from PayPal, the New York State Department of Financial Services has granted a conditional 'Bitlicence'. This operational license is the first of its kind.

PayPal will work alongside Paxos Trust, an existing cryptocurrency provider to provide a more regulated experience.

PayPal is known to take innovative, bold and daring steps to stay ahead of the curve. Not long ago they partnered with Facebook's digital currency Libra. But pulled out of the partnership only a few months after the announcement was made.

The controversial scheme had financial regulators from across the globe interested. So much so that Facebook is rethinking the idea despite all the resistance.

PayPal will continue to explore cryptocurrency, working hand in hand with regulators, governments and central banks.

Published: November 4, 2020

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Article by Stelly

CasinoWow Contributor

Hey there! I am Stelly, and happily, I'm part of CasinoWow's content team. It excites me to be able to write and share with all gambling enthusiasts unbiased reviews and news that contribute to the gambling community and industry. Thankfully, I also have the chance to help you make an informed choice for casino brands and games, as well as provide interesting guides and news.

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