PayPal Is Launching Its Own Cryptocurrency
Previously, PayPal announced that it would allow merchants to accept cryptocurrency as a mode for payment. And then they went live with the solution with its 29 million merchants. Nevertheless, it is only available for those with PayPal cryptocurrency holdings in the United States. PayPal announced that users could buy and hold specific cryptocurrencies in their wallets with the help of Paxos. They were astonished by the demand, and later they commented that it added stickiness to the wallet. This helps users to check the valuations.
PayPal CEO said that digital currencies allow the introduction of checkout, and crypto continues the focus on driving the adoption of cryptocurrencies. He further added that allowing cryptocurrencies to make purchases in businesses worldwide can cause the mass acceptance of digital currencies. No doubt, it is a big deal for PayPal, but many cryptocurrency exchanges have already offered Mastercard and Visa cards that allow users to pay via cryptocurrency. Hence, it is possible to pay with cryptocurrency at any outlet that accepts Visa.
Several cryptocurrencies are supported, such as Bitcoin, Litecoin, Ethereum, or Bitcoin Cash. For retailers, purchases are getting converted into fiat currency, and the retailer receives fiat currency as usual. And that’s how it works for cards and PayPal. PayPal also said they would not charge any fees, but cryptocurrency is spread. As of now, Ethereum fees are higher, which means Ether is important. And this will have a significant impact on cryptocurrency payment due to taxes.
PayPal is launching a stablecoin as its cryptocurrency
As the venerable online payment business continues to integrate ways to engage with digital coins on its platforms, PayPal is considering introducing its cryptocurrency backed by the US dollar.
PayPal acknowledged to Bloomberg that it is considering releasing its stablecoin, a cryptocurrency backed by and linked in value to an existing currency. Developer Steve Moser went inside the PayPal app and found evidence that the corporation experimented with a cryptocurrency dubbed “PayPal Coin” backed by the US dollar.