As part of a broader plan to enable customers access to virtual currency, the fintech giant PayPal, had announced yesterday, October 21st, that US account holders will be able to buy, sell, or store Bitcoin and other cryptocurrencies in its online wallet, creating new incentives for an increase in crypto adoption.
Back in March, we’ve seen how Verizon decided to use the blockchain technology for security portfolio, but in the case of PayPal, we are talking about a mainstream financial company, with 346 million accounts around the world and $222 billion payments processed during Q2 of 2020 alone.
Bitcoin skyrockets on the news
The PayPal news was a major catalyzer for the Bitcoin price, which had managed to reach a new yearly high around $13,200 on the Coinbase exchange. Although other large-cap tokens did not have the same impulsive performance, gains across the board can be seen today, as the risk sentiment got a serious boost.
It’s the first time since July 2019 when Bitcoin manages to break above $13,000, suggesting a major improvement in bullish momentum. The next hurdle for the price is located around the $14,000 area, where Bitcoin topped last year.
Other factors could weigh on Bitcoin in the near term, but on a larger time frame, PayPal has the potential to stimulate further crypto adoption, which is good for the valuation prospects.
Is this a long-term game changer for crypto?
Dan Schulman, President and Chief Executive talked during an interview about the latest decision, highlighting “we are working with central banks and thinking of all forms of digital currencies and how PayPal can play a role”.
Interest from central banks with regards to digital money is no longer a secret. Last week we’ve seen ECB’s Christine Lagarde talking about the digital euro. However, crypto enthusiasts would like a decentralized financial system and tokens like Bitcoin as the main payment methods.
Whether or not that will occur is still up to debate, but the involvement of fintech giants like PayPal opens up a new path for Bitcoin and some other popular cryptocurrencies. Keep in mind that the service will first be available for US customers and in 2021, the company wants to expand it internationally.
Do you think this is the catalyzer Bitcoin long-term buyers were waiting for? What about the PayPal decision, could that mean a lot of new people will start to buy crypto?