History repeats? PayPal revisits the idea of getting crypto in
Could PayPal be the next platform for users to directly buy and sell crypto? Just a few days ago, this very rumour was published on CoinDesk and it basically hinted that PayPal and Venmo could be offering a built-in wallet functionality to store crypto. It would also allow the direct purchase and selling of cryptocurrencies.
Say What??
According to three (well-placed) industry sources, the giant online payment system would be cooperating with multiple exchanges to source liquidity. Moreover, it was mentioned that this could potentially happen in the next three months or sooner.
There’s more: At the start of 2020, job openings for engineers were posted by PayPal, seeking to increase its blockchain research group.
In the words of PayPal Chief Technology Officer Sri Shivananda from earlier this year: “We are a strong believer in the potential of blockchain. The digitisation of currency is only a matter of when, not if.”
Sounds too good to be true? Let’s take a step back.
A blast from the past
Currently, PayPal is an alternative means to withdraw funds from exchanges such as Coinbase, but this is the first time it would offer direct sales of crypto.
But wait, all this isn’t new right? We’ve seen PayPal repeatedly come back to crypto from the past.
2014
PayPal’s relationship with crypto began when it announced partnerships with three payment processors of Bitcoin – BitPay, Coinbase and GoCoin.2016
PayPal showed interest in blockchain technology. The company then filed a patent for a faster cryptocurrency payment system.2017
Early PayPal executive David Sacks said, “Cryptocurrency is fulfilling PayPal’s original vision to create the new world currency.”2020
History repeats itself?: PayPal comes back to crypto again and could now potentially offer it directly on their platform.
What could happen next
For starters, there’s been speculations of a bull run. Cointelegraph Markets analyst Michaël van de Poppe believes that there is a big push towards $12,000 for Bitcoin, should new resistance levels become support.
He also adds that the current behaviour is similar to the “grinding” seen before a bullish phase of Bitcoin in 2019 – yet another example of history repeating itself.
Also, the fact that one of the largest payment processors in the world is getting into crypto is a huge plus for all digital assets out there. Institutional investors will start taking it seriously and be more open to institutional adoption in the future, which will likely increase the price of crypto.
PayPal has declined to comment as yet. But earlier this year, PayPal CEO Dan Schulman had said that the company is interested in monetising Venmo in 2020.
And perhaps having seen its competitor Square’s success with Bitcoin, PayPal got its final push into the crypto zone.
What does it have to do with you?
If you’re a trader, it should come as no surprise that history repeats itself – lots! We saw it in the timeline, we’ve seen it in the comments of people. So let’s make use of that.
We are building a time machine for traders, pretty much for moments like these, but in the trading world. If you want to take advantage of everything you know about the past and see how that can affect the present and future, then this is what you want to look out for. Find out more about the revolution here.
Ben from BitBoy Crypto shares more about the rumour and PayPal’s mysterious patent for a faster payment system for cryptocurrency.
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