PayPal has launched a service that allows its customers in the United States to use their cryptocurrency tokens to transfer money at various wholesale trades or merchants all over the world. This step taken by PayPal is going to prove beneficial as companies will adapt to the atmosphere and use digital assets and cryptocurrencies in excess.
People having cryptocurrencies in their PayPal digital wallets can now easily use the tokens to execute online purchases. The cryptocurrencies such as Bitcoin, Ether, Bitcoin Cash, and Litecoin can now be converted into fiat currencies if a person holds them in their digital PayPal wallets. This service of the American online payments operating company will offer their 29 million merchants in the coming weeks.
Bitcoin’s Rise and Firms’ Interests
Dan Schulman, the president and CEO of PayPal, stated before the official announcement that this will be the first time you can use cryptocurrencies for purchases and payments as easily as credit or debit cards are used.
Bitcoin has enjoyed a surge in the crypto market as its value has been doubled since the start of the year 2021. The major reason behind the rise of Bitcoin is its adaption by large financial firms and companies like PayPal. Apart from PayPal, the electric vehicle manufacturer Tesla has also accepted Bitcoin as a method of payment. Although, unlike PayPal, Tesla has refrained from converting the tokens of the leading cryptocurrency into fiat currency.
The major problem that comes with this asset is its volatility. Investors might have started accepting cryptocurrencies as reliable assets and a form of payment, but many companies have their concerns because of the continued volatility.
PayPal believes that this discrepancy will be corrected, and customers will avoid the risk of this volatility as the online payments operating company will convert the digital coins into fiat currencies. PayPal has announced that there will be no charging fees for transactions through cryptocurrencies. The American company told customers that only one kind of cryptocurrency could be used for a single purchase. The CEO of PayPal believes that this a transitional point for cryptocurrencies as they are turning from an asset to a form of payment being used globally.