The world of the cryptocurrency was in turmoil for a while, because many were already trying to become the “PayPal of the cryptocurrency”. But at the end to revolutionize the world of the payments was one more time PayPal itself. Here you have how since today it will be possible to pay on PayPal by using the cryptocurrencies.
What is PayPal
Let’s start from saying what PayPal is, if there is still someone in the world that never heard about it. PayPal was born in the 1998 but it was launched in the marketplace only the following year, as a service to transfer money.
It had the turning point the following year, when PayPal merges with X.com, company of online banking services owned by Elon Musk. In the 2000 PayPal stops to be a service of internet banking to fully dedicate itself to the service that we all know.
By the way it becomes a public service only in the 2002. PayPal quickly grown, by revolutionizing the system of the online payments.
Since there, infact, many thought it was too risky to put their datas online to make payments with the credit cards. PayPal offers a services of money transfer, without share the datas of the user’s card with the beneficiary of the payment.
It might seem a simple idea, but it completely revolutionised the world of the online payments.
PayPal opens the doors to the cryptocurrency
While in the world of the cryptocurrency they were “fighting” to become the first “PayPal of the cryptocurrency”, on the other side there was who already was ready to revolutionize the online payments one more time: PayPal itself, obviusly.
Today the service of intermediation for the online payments accepts 24 values, between which dollars, euros, pounds, yen, since the 2021 we will be able to pay even with bitcoin, bitcoin cash, ether and litecoin.
The service, though, it will be available, at the beginning, only for the american users.
To make it possible, PayPal started a partenrship with Paxos Trust Company, which will handle with trading and custody. And, therefore, it obtained a bitlicense, from the Department for the Financial Services.
All of it will allow the users to buy and to sell bitcoin, and the other cryptocurrencies, with the classic modus operandi of PayPal, which means, completely safe.
The volatility of the cryptocurrency
Anyway, the history of the bitcoin teaches us that the cryptocurrencies are all unless a safe system of payment, because of their incredible volatility. It is right this characteristic that makes it an unstable system of payment.
The cryptocurrency don’t seem, infact, still ready to be a daily system of payment. The system of PayPal, infact, only wants to use them as a way. They will be promptly transformed in real values, to avoid the risk of creepy fluctuations of change.
To have an idea of the volatility of the cryptocurrecy we just have to think to what the announce of the opening by PayPal created in the world of the bitcoin.
The announce made the quotes of the Bitcoin grow of the 8% in less than 24 hours. If before they stayed at less that 12 thousand dollars, few hours after the announce they arrived to touch the 13 thousands. But this is nothing if we think that in march we had a historical minimum in the quotes of the bitcoin that border on the 5 thousand dollars.
The cryptoccurency won’t be able to leave the system of PayPal
Like we said, the cryptoccurency will be promptly transformed in real money, in american dollars in this case, because the service is available only in the United States. And so we will be able to do our transitions, to which it will be added a fix fee of 50 cents for the amounts under the 25 dollars.
If we pass this amount the fee then will go from the 2,3% to the 1,5% for the transitions over the thousand dollars.
The retailers, so, will receive the payments in real money and not in cryptocurrency. Basically the cryptocurrencies inside the system of PayPal won’t be able neither to go out nor to enter, and they cannot be transfered to another account either, but they can be only transformed.
Anyway the thing is still revolutionary for the world of the online payments and of the cryptocurrency. And it is, by the way, only the starting point, for a future of the online payment which is still all to write.
This post is also available in: Italiano