Crypto functionality may come to PayPal and Venmo
Yesterday, it came to light that crypto functionality may come to PayPal and Venmo. If true, as substantiated by three anonymous sources and indicated by an open position for a senior blockchain research engineer, 325 million users would be able to buy and sell crypto.
“If it does happen, it has the potential to be the biggest crypto on-ramp ever,” Mati Greenspan, founder of Quantum Economics, told Blockchain Bites.
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It’s an interesting time to consider rolling out direct sales of crypto, which could happen within three months, according to a source cited in the original story.
Amid the COVID-led market turbulence, crypto has emerged as a relatively safe bet for investors. As CoinDesk First Mover reports, crypto has tracked traditional assets like the S&P 500, while also recording an approximately 30% gain year to date. This performance in a global rut led JPMorgan analysts to conclude crypto is here to stay.
Further, as the world sheltered in place, crypto exchanges, payments apps and remittance services saw bustling use.
“Now that the blockade has been busted and everyone who wants to can buy bitcoin, there’s not much point boycotting it,” Greenspan said. “May as well make a few bucks on your way out.”
Questions remain. “I am waiting to see how this will be executed,” Ouriel Ohayon, CEO of ZenGo, told Blockchain Bites. “Will PayPal give customers control to move their cryptos outside of PayPal? Will their fee model be friendly? Will they have a wide choice of crypto assets to buy and sell?”
Perhaps most important is whether bitcoin’s success will lead to PayPal’s demise.
“We can only assume that the reason they haven’t done it until now is because bitcoin has the potential to render their service useless,” Greenspan said.
By Daniel Kuhn, Jun 23, 2020, published on CoinDesk