In recent years, cryptocurrency – that can be traded via the Immediate Edge have been gaining recognition, and their usage has been able to gain traction in the global financial market. Despite the risk of trading bitcoin the use of bitcoin has grown in the last year. According to financial experts that this technology is expected to last and to be a major factor in the coming years.
Governments and financial institutions are monitoring the changes as more and more people use the digital currency and associated technology. The development of cryptocurrency has provided different players in the global economy new opportunities and problems. Smaller businesses, for instance are discovering a different growth opportunity while larger corporations are beginning to appreciate the reliability and effectiveness in distributed ledger technology.
One of the latest banks that accept Bitcoin as a payment method for purchases of products or services, is PayPal. This could be beneficial for both the business and its clients.
Integrating bitcoin in PayPal’s function
PayPal has been successful in being aware of developments in the world of digital currencies due to the fact that it knows the importance of companies to be able to monitor changes over time in order to grow. It stated that users would be able to access their accounts to conduct bitcoin transactions beginning in October this year. This is a smart move since it will not only enhance the experience for current customers of PayPal but also attract potential customers inclined to use crypto. Additionally, the addition of this type of currency on the platform of the company suggests that users will be able buy products from the thousands of merchants who are registered with PayPal. The company intends to offer its customer base across the globe within the timeframe it has set. When PayPal announced it would be supporting cryptocurrencies bitcoin, the price was just $12,000. The price has continued to increase since the company’s announcement. In November of 2020, the cost was $18,997. the highest figure that was recorded over the past three years.
Based on the opinions of financial professionals, PayPal will soon be buying all bitcoins that are brand new in the event that the trend continues to grow. This indicates that the business has taken the right decision and is aware of the immense impact of technology.
The challenges of the introduction of Bitcoin
The use of cryptocurrencies on PayPal can be subject to limitations similar to any other financial plan.
- The primary concern is the client’s privacy of data, as every bitcoin transaction can be monitored and processed in public. Customers will need to transfer bitcoins from their wallets to PayPal accounts as well as all transactions can be seen online.
Therefore security can be questioned, especially by those who aren’t familiar with bitcoins. It could be difficult to adopt similar privacy laws for data making use of digital currencies. PayPal currently has privacy guidelines for data to protect its users from unauthorized use of information.
- In addition, using bitcoins for money could also result in issues with the regulations.
Financial technology companies must follow government-instituted regulatory frameworks. Illegal market transactions are possible due to online transactions. The use of cryptocurrency creates a challenge for law enforcement authorities to monitor the criminal activities.
Benefits of the use of Bitcoin to run Paypal’s operations
The integration of bitcoins into PayPal’s financial systems is intended to boost customer engagement with the company’s offerings. Schuman, who is the CEO of the business, suggests that PayPal introduce a standard service that will ensure that customers start to think about the possibility of using the technology to benefit from the benefits of cryptocurrency.
Since PayPal provides a variety of users, the use of bitcoins will improve the financial accessibility. Online transactions such as peer-to-peer (P2P) and production-to-consumer (P2C) transactions will gain from digital currency. Since fees are virtually zero with bitcoins, sending money to people and businesses is much less costly. This means that due to the affordable transaction rates, PayPal and other businesses that are similar to them can bring more customers. Furthermore, the company’s payment system will be more reliable, efficient and speedy due to the use of cryptocurrency. Customers will not have to wait as long to see their transactions completed, due to this function.
How to buy Bitcoin on PayPal
- Register on PayPal to set up your account.
- Go to “Buy and Sell” under the “Your crypto” section.
- Click on “Bitcoin” and “Buy.”
- Enter the amount of Bitcoins that you would like to buy.
- Select your preferred payment method, then select “Next.”
- Check the conversion rate and processing fees.
After that, you can click “Buy Now” to confirm your purchase. The Bitcoins will be now present in your PayPal account.