Paypal launching cryptocurrency services has given crypto investors much to think about. While many crypto users view the news as extremely bullish, some point out several areas of concern bitcoin investors should be aware of.
‘Every Major Bank Is Having a Meeting About How To Support Bitcoin’
The news of Paypal launching a service that will enable customers to buy, hold, and sell cryptocurrencies directly from their Paypal accounts has triggered much discussion within the crypto industry. Users will also be able to pay for goods and services at 26 million stores that accept Paypal as a form of payment with the cryptocurrencies in their Paypal accounts.
The crypto industry has largely viewed the news as extremely bullish, sending the price of bitcoin above $13,000. Virgin Galactic chairman Chamath Palihapitiya tweeted in response to the Paypal news Wednesday:
After Paypal’s news, every major bank is having a meeting about how to support bitcoin. It’s no longer optional.
Regulations in the U.S. permit banks to provide cryptocurrency services. The U.S. Office of the Comptroller of the Currency (OCC) has already confirmed that federal banks are allowed to provide cryptocurrency custody services.
Messari founder Ryan Selkis tweeted: “Finally. Paypal joins the bitcoin space race … 346 million users … 26 million merchants … 20th largest ‘bank’ by deposits. Between them, Square, and Grayscale, it’s safe to assume that all remaining BTC will be hoovered up by public companies.” Recently, Square Inc. announced that it had put 1% of the company’s total asset into bitcoin, worth about $50 million. Grayscale Investments has been scooping up bitcoin, adding $1 billion to its crypto products in Q3.
Twitter user Vijay Boyapati opined: “It did not escape Paypal’s notice that Square was making a very large fraction of its profit allowing users to trade bitcoin. More and more financial institutions and payment processors will figure this out soon. The fiat on-ramps are getting bigger quickly.”