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- PayPal executives have confirmed that Bitcoin and Ethereum will be integrated into the digital wallet globally in the first quarter of 2021.
- PayPal wants to gain experience with cryptocurrencies first before the integration of central bank digital currencies (CBDCs) is pushed.
PayPal provided a hype in the crypto market a few days ago when the payment giant announced it was bringing Bitcoin, Ethereum and other cryptocurrencies to the digital wallet. In a new investor update, the company provided more details on the exact roadmap for the coming months.
Crypto-currencies in spring 2021, CBDCs to follow
As part of the update, Dan Shulman, CEO of PayPal, said the financial world is moving from physical to digital currencies and PayPal will play a pivotal role in this revolution. According to Shulman, various cryptocurrencies and fin-tech projects are forcing traditional providers such as SWIFT and PayPal to question the existing infrastructure and offer new payment solutions to their customers.
Shulman strongly believes that the traditional financial structure has had its day and that the time has come for a revolution and that PayPal can and will promote future development because of its reputation and innovative power:
I think our platform and all the new digital infrastructure we’re putting in place right now can help make that management and movement of money more efficient, cheaper and faster.
The CEO went on to describe that the demand for cryptoservices within the company has risen sharply and that by the end of the year all US citizens will have access to cryptocurrencies through PayPal. Expansion of services for remaining customers outside of the United States of America is expected to follow in the first quarter of next year.
Shulman pointed out that many users check their portfolios several times a day to closely monitor the performance of their assets:
We see people who have bought crypto before opening their wallets several times a day to see what is happening with their crypto investments.
Due to the high interest, PayPal will increase the weekly purchase limit from $ 10,000 to $ 15,000. PayPal also plans to integrate cryptocurrencies into the Venmo digital wallet, which already has 300 million users worldwide. This will put 346 million users in contact with cryptocurrencies through PayPal and another 300 million through Venmo.
PayPal users can also use cryptocurrencies with over 28 million merchants logged into the payment network. In a new Anthony Pompliano podcast with Reuters correspondent Anna Irrera, who also wrote the headlines for PayPal’s plans to enter the crypto market, Irrera explained that PayPal is also preparing to integrate CBCDs.
Gain experience with cryptocurrencies before the arrival of CBDCs
The start with decentralized cryptocurrencies serves, according to Irrera, among others, to gain experience with these new assets. According to Shulman, CEO of PayPal, it’s not about whether the CBDCs will come, but only when. The company therefore wishes to play a decisive role in shaping future developments in this area and to further promote adaptation.