Institutional Validity: The PayPal Paradigm Of Cryptocurrency
Introduction: An International Institute For Intercontinental Payments:
The universality of online payment platforms cannot be overstated: over 400 million people throughout the globe utilized digital payment platforms to send and receive money. Milton Friedman, a renowned economist of the 20th century in 1999, emphasized the necessity of a reliable e-cash to correspond with the digital revolution that humanity had begun to witness. This notion has been proven accurate with the onboarding of the largest digital payment platform in the world, and that platform is known as PayPal. It is incumbent to put into the perspective the magnitude of an entity such as PayPal entering the blockchain sphere, further perpetuating the paradigm of the global validity of digital payments; further emphasizing the ethos of cryptocurrency, “banking the unbanked.” PayPal has slightly over 285 million active users and over 86% of digital payments are conducted through the PayPal network; if only 20% of users utilize cryptocurrency payments through PayPal, over 57 million people would enter the blockchain sphere. If we were to comprehend the amount of people that is, based on population statistics of nations around the globe, 20% of PayPal users would make up the 26th largest country by population. Institutional validity for cryptocurrency is coming, and the harbinger of this notion is PayPal.
Bitcoin And Cryptocurrency: What PayPal Means For A Global Audience
It is evident that the blockchain and cryptocurrency sphere are in their infancy; according to statistical analysis, approximately 40 million people own cryptocurrency and utilize blockchain ecosystems for monetary transference; PayPal has almost six times the amount of users as the global network of cryptocurrency users. PayPal will enable users to buy, sell and hold four different cryptocurrencies to begin with: Bitcoin, Ethereum, Litecoin and Bitcoin Cash. The disdain for global banks and centralized institutions has become abundantly apparent, especially throughout the COVID-19 pandemic where we’re seeing a stark increase in digital payments and transactions through blockchain networks as necessity demands a means for transacting during quarantine and universal shutdowns. As PayPal has announced its new service to allow users to buy, hold and sell cryptocurrency, it is evident that the migration towards digital payments and digital representations of value continue to expand and accelerate at a rapid rate. PayPal launching this blockchain service is a hallmark of institutional and retail validity and legitimacy for cryptocurrency as a global payments platform, which in return, will assist in the expansion of digital payments to millions of merchants worldwide. It is important to acknowledge that PayPal intends to expand this service for Venmo users in the near future; to put that into perspective, approximately 40 million people utilize Venmo as a means of transaction, if Venmo users comprised a nation, than it would be the 36th largest nation by population in the world. It is incumbent to reference the utility and integration of cryptocurrency payments through PayPal surrounding merchants. Through the launch of PayPal’s new service, any consumer who utilizes PayPal’s digital payments platform will be able to utilize the virtual money shop integrated within PayPal to purchase goods and services from over 26 million merchants worldwide. This integration will enable millions of businesses to use cryptocurrency as a means to fund, hold, buy and sell their services on a global scale.
Hinderance No Longer: Institutional Acknowledgement Of Digital Payments
It is evident that a primary ethos that drives speculators into the blockchain sphere is the notion of volatility; however, more and more banks and companies are creating stable-coins to combat this unfortunate aspect of the cryptocurrency ecosystem that hinders mass adoption. According to the Bank of International Settlements study “one in 10 central banks, comprising 1/5th of the worlds population, expect to issue their own digital currencies in the next three years.” Resilience, speed, financial inclusivity, democratic economic paradigms, banking the unbanked, and the ability for federal, state and local governments to issue payments to their citizens quickly are all advantages in utilizing cryptocurrency as a means of transaction and central banks and corporate entities such as PayPal are catching on. For businesses, this is an incredibly advantageous financial proposal for numerous reasons, specifically surrounding financial inclusivity and the unique ability for users who don’t have access to bank accounts to participate in the global economy. Merchants who utilize PayPal will be able to convert cryptocurrency to fiat currency with no incremental fees; in essence, PayPal solves the concern of volatility through the availability to convert cryptocurrencies into fiat currencies through your digital PayPal wallet. PayPal has plans to work with central banks around the world to assist in the mainstream adoption of cryptocurrency in global markets, perpetuating the utility and use-case of digital payments. It is important to note however, for all businesses and consumers who’re interested in utilizing PayPal as a means to hold cryptocurrency, that existing token holders can’t transfer their coins from other digital wallets to your PayPal wallet. However, PayPal continues to embrace digital networks of payment through the exploration of acquiring prominent cryptocurrency firms.
Embracing Cryptocurrency: PayPal’s Exploration Of Acquisition
PayPal continues to embrace the cryptocurrency and blockchain sphere through the possible acquisition of cryptocurrency firms that have existed in this ecosystem shortly after the inception of Bitcoin. For example, PayPal is in talks to buy cryptocurrency firm BitGo, a digital asset trust company founded in 2013, four years after the conception of Bitcoin following The Great Recession. BitGo offers its customers the ability to manage the risk of their cryptocurrency holdings through the utilization of a multi-signature bitcoin wallet service, where keys are divided amongst a number of owners. According to PitchBook, BitGo has an approximate valuation of 170 million dollars and a possible deal between PayPal and the firm maybe reached within weeks. PayPal has also discussed that it will partner with Paxos Trust Company, a regulated provider for cryptocurrency products and services for PayPal’s new digital payments service.
Conclusion: The Harbinger Of Digital Payments: Utility And Use Case Realized
Throughout humankind’s history, the global transference of value and goods and services has revolutionized our civilization; we’re in the midst of another revolutionary economic transition that will shake the foundational bedrock of the global financial paradigm. From approximately 9000 B.C.E. to our contemporary world, we have seen dynamic shifts in economic transference; from bartering, metallic coins, paper money, plastic money in the form of debit and credit cards and now, the next shift has arrived, and that paradigm shift is hallmarked by blockchain and cryptocurrency technology. PayPal has recognized this transition of our economic system as it enables inclusion, efficiency and reliability for all users involved. The Fourth Industrial Revolution has arrived, and blockchain and cryptocurrency will be a fundamental innovation that revolutionizes our society and for PayPal to recognize the value of cryptocurrency as a means of transaction, emphasizes and proves such a notion.
Disclaimer: Cryptocurrency investing requires substantial risk, do not invest more than you can afford to lose! I am not a financial adviser and I am not responsible for any of your trades. It is incumbent that you always do your own research before investing in anything!
