June 24, 2020

PayPal rumoured to be developing a Bitcoin service

By Ellen Daniel

Rumours that PayPal could roll out a Bitcoin service to its 325 million active users “add to the credibility of Bitcoin”.

Although the company has not confirmed rumours, according to Coindesk, sources have said that users may be able to buy and sell cryptocurrencies using a built-in wallet function on PayPal and PayPal-owned Venmo, with the company expected to work with “multiple exchanges to source liquidity”.

A source also told Coindesk that this may happen within the next three months.

Merchants that use PayPal can accept Bitcoin payments, but users have not yet been able to buy and sell cryptocurrency on the platform.

Later this year, digital currency exchange Coinbase will add the ability for US and European users to link their Paypal and Coinbase accounts and will be able “either withdraw cash to PayPal or sell their crypto to their PayPal account”.

PayPal recently advertised job vacancies in its Blockchain Research Group and for a a technical lead/cryptocurrency engineer, further sparking rumours.

Paypal Bitcoin rumours suggest u-turn

Danny Scott, CEO at CoinCorner, commented that the company may have done a u-turn on its Bitcoin stance.

“Until now, PayPal has seemingly shown no interest in Bitcoin – founding CEO, Bill Harris has even publicly denounced Bitcoin in the past,” he said.

“However, PayPal did add Wences Casares (CEO of a Bitcoin exchange) to their board back in 2016 and now seem to have a CEO who has recently made very positive comments towards Bitcoin, as well as admitting to owning Bitcoin and Bitcoin only.”

Scott explains that this may have been motivated by encouraging revenue from Bitcoin sales from competitors.

“If this rumour is true, it looks like PayPal may have been motivated by Square’s CashApp that recently added Bitcoin. They announced their Q1 2020 revenue from Bitcoin sales, which came in at a massive $306 million, exceeding their fiat revenue streams. Of course, PayPal owns Venmo, a competitor to CashApp, which may be the real reason behind this decision – maybe this year we will see Venmo add Bitcoin in a similar fashion to how CashApp has,” he said.

“So far, 2020 has been a great year for Bitcoin as it’s proven itself as a safe haven asset and been resilient to all the challenges it’s faced. Once again, we’re seeing a growing interest in Bitcoin, with the sentiment turning more positive as the year goes on. We’ve also seen month-on-month increases in sign ups at CoinCorner; March +21%, April +21%, +May 9% compounded from their previous months. In my opinion, regardless of whether the rumours are true or not, this only adds to the credibility of Bitcoin.”

Read more: Trump “backward-looking and out-of-touch” on Bitcoin: deVere CEO

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