PayPal is Good for Crypto (For Now)

The payments giant’s move into crypto is more complicated than what meets the eye

In the press release, PayPal CEO Dan Schulman stated that they were preparing the “network [to support] new digital currencies that central banks and companies may develop”.

Why is PayPal interested in crypto?

There’s tons of money to be made.

Analysis via Author. Data via Square earnings reports
Source via Kevin Rooke
Cash App has greatly profited from its BTC offering. Source TechCrunch

Crypto increases engagement amongst PayPal’s users

Crypto will position PayPal well against industry macrotrends

“I think this is more about PayPal being smart and looking to the future when fiat currencies will go digital,” said David Birch, director at payments consultancy Consult Hyperion.

How will this affect the crypto industry?

Source via BTCUSD rolling 30-day chart from Bitstamp on TradingView

“For regular people that have never heard of Bitcoin, the association between PayPal and Bitcoin, those are all signals for Bitcoin being recognised [sic] as a digital asset that works,” said Lex Sokolin, global fintech co-head at ConsenSys.

PayPal made purchasing items on eBay safe and easy for bidders. Image via PYMNTS

But it’s not all good news

The kids can play with their shiny new toy, but they can only do it in the backyard.

Screenshot from PayPal’s FAQ. Image via PayPal
Screenshot from PayPal’s FAQ. Image via PayPal
Image via Author

Product manager, DAO contributor, crypto enthusiast