Several reports have recently noted that PayPal is planning to integrate cryptocurrency trading into its platform.
It is important to note that PayPal has yet to confirm this rumor. However, several tech insiders have pointed out that the tech giant is preparing its platform to support such transactions. There are some hints that the platform is already on the final stage of development to incorporate such features.
The rumors
Rumors started to emerge sometime in June about PayPal entering the cryptocurrency market. The company, alongside its subsidiary Venmo, was reportedly working on the project. At that time, the project was supposed to integrate 325 million users into the new system.
According to Coindesk, a handful of cryptocurrency exchange platforms are also joining the deal. Among which are BitGo and Coinbase. However, further investigation revealed that those are just mere rumors.
The safety and security of customers is @PayPal’s top priority. Here are a few tips to stay protected while transacting online. https://t.co/UMgvj5xNqV pic.twitter.com/XvcwBVnIKW
— PayPal News (@PayPalNews) August 7, 2020
When the original report was published, it hinted that PayPal is also launching a cryptocurrency trading platform. The most interesting part of it is that the company plans to roll it out in just three months. This led many to believe that the company plans to roll out its new service in September.
The tech community is awash with speculations about the upcoming launch. Some speculations suggest that the company plans to roll out its service alongside the new Paxos Crypto Brokerage service.
The online payment giant has yet to confirm whether it is working with Paxos or not. However, there are several hints that suggest that the partnership is well on its way. Tech insiders have also suggested that the company will make the necessary confirmation about the deal later this week.
The effect on bitcoin price
Although many expect the deal to be on its way, some are still skeptical about its effect on the market. There are some questions about the effect of the proposed deal on the price of bitcoin.
There are some analysts who believe that the PayPal deal will cause the bitcoin price to go up. While this is an interesting notion, bitcoin’s market volatility undermines that prediction.
Despite the speculations, it appears that PayPal is actually targeting the cryptocurrency market. The company posted an opening in April, looking for AML and blockchain experts. This suggests that the company is indeed working towards the adoption of cryptocurrency.
It is also important to note that PayPal was once a major partner in Facebook’s Libra project. The project aims to develop its own cryptocurrency.
Featured image courtesy of Wikimedia Commons
