Mainstream adoption is just around the corner! PayPal CEO: 28 million merchants will be able to transact in cryptocurrency in 2021

The CEO of PayPal believes that as more businesses and consumers flock to digital payments and digital forms of currency, cryptocurrencies are moving towards mainstream adoption.

Enhancing the Practicality of Cryptocurrency

It is well known that the global payment giant PayPal announced on October 22nd this year that it will open up its online wallet to support the buying, selling, and holding of cryptocurrencies. The user interest in cryptocurrencies has exceeded expectations, prompting PayPal to increasingly focus on the development of its cryptocurrency business. PayPal CEO Dan Schulman stated in an interview with CNBC yesterday that cryptocurrencies will have more and more practical use cases, and the utility of Bitcoin as a currency will ultimately surpass mere buying and holding.

Dan Schulman mentioned that the COVID-19 pandemic has accelerated the global shift towards digital payments, with cash usage plummeting sharply. Approximately 40% to 70% of consumers no longer wish to transact with cash. In this regard, PayPal seeks to be at the forefront of digital transformation. With the introduction of cryptocurrency buying and holding capabilities, the service will further integrate with existing merchants, allowing businesses to accept cryptocurrencies as a new digital payment method. Dan Schulman stated:

"What we allow is not just to make buying, selling, and holding cryptocurrencies easy, but more importantly, early next year, we will allow cryptocurrencies to be a source of funds for transactions among our 28 million merchants. This will greatly enhance the practicality of cryptocurrencies."

Furthermore, when asked about the intrinsic value of Bitcoin, Dan Schulman stated that the value of Bitcoin, like all forms of money, is based on trust, and the value level also depends on the degree of trust.

PayPal Leads to Bitcoin Demand Outstripping Supply

A report released by cryptocurrency venture capital firm Pantera Capital not long ago indicated that PayPal's decision to launch cryptocurrency trading functionality played a crucial role in the rise in Bitcoin prices. Pantera Capital stated in the report that the shortage of Bitcoin is a core reason for the recent price increase, with the majority of newly minted Bitcoins being bought by PayPal users, accounting for approximately 70%. Pantera cited data from itBit (the exchange under PayPal's partner Paxos) saying:

"After the launch of this feature on PayPal, trading volume began to grow explosively. The increase in itBit's trading volume means that within four weeks of the launch, PayPal had purchased nearly 70% of the new Bitcoins."

Moreover, according to the company's estimation, the combined amount of Bitcoins purchased by the two major payment companies, PayPal and Square Cash App, exceeds 100% of all newly issued Bitcoins.