Huge news from PayPal! They will announce later on today that it has started allowing U.S. consumers to use their cryptocurrency holdings to pay at millions of its online merchants globally, a move that could significantly boost use of digital assets in everyday commerce. This is the type of adoption we need to significantly cement crypto into everyday use.
This breaking news was reported by Reuters about 4 hours ago.
Customers who hold bitcoin, ether, bitcoin cash and litecoin in PayPal digital wallets will now be able to convert their holdings into fiat currencies at checkouts to make purchases, the company said. The service, which PayPal revealed it was working on late last year, will be available at all of its 29 million merchants in the coming months, the company said.
“This is the first time you can seamlessly use cryptocurrencies in the same way as a credit card or a debit card inside your PayPal wallet,” President and CEO Dan Schulman told Reuters ahead of a formal announcement.
Checkout with Crypto builds on the ability for PayPal users to buy, sell and hold cryptocurrencies, launched in October. This is a way for PayPal to gain market share in the market. These offering makes PayPal one of the largest mainstream financial companies to open its network to cryptocurrencies and helped and will continue to fuel a rally in virtual coin prices.
“We think it is a transitional point where cryptocurrencies move from being predominantly an asset class that you buy, hold and or sell to now becoming a legitimate funding source to make transactions in the real world at millions of merchants,” Schulman said.
The company will charge no transaction fee to checkout with crypto and only one type of coin can be used for each purchase, it said. This is a start and will do wonders for adoption.
Digging in a bit more the actual transactions will be conducted in crypto, but the merchant will be settled in cash. I would like to see it all stay in crypto, but Paypal has acknowledge that markets are volatile and merchant don't want to take on that risk at this time.
For both the merchant and buyer there are tax considerations that still might be an issue...
The terms and conditions for “Checkout with Crypto” include a number of important caveats, such as the tax liability: “Sales of Crypto Assets via Checkout with Crypto are taxable just like all other sales of Crypto Assets.” PayPal will provide the consumer with a 1099 tax form and report to the IRS as necessary, but “it is your responsibility to determine what taxes, if any, apply to transactions you make.”
I think until we get meaningful tax reform for cryptos this will be issue. However, with the Visa announced I talked about yesterday this has been a big week for crypto. I can't wait to see if this price action is as bullish as I think it should be.
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This is really awesome. I think this is the kind of news that could definitely push us over $60k today. I agree with you about it not being ideal since they are still converting to fiat, but it is definitely a step in the right direction!
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Baby steps! I like that visa is keeping it in usdc vs fiat. Each project has its pros and cons. I’m just a happy to see more adoption.
Yes, I like the VISA model as well. Even though we both are not happy with the ETH element of it.
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Can't win them all. I just want everything built on hive anyways so I'm pretty bias.
I hear ya!
Thats the problem, this is going to be a nightmare trying to figure that out.
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I had to deal with it this year. I hope governments treat it differently on the coming years. Heck I’d love for it to be treated like usd!
In general, good news. But with reservations and red flags with the PayPal online payment Monopoly.
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As do I. When we get these big players it's a double edge swapped because we want adoption bunt don't want to turn into the current dinosaur markets and systems. We will need to strike a balance.
I'd rather see a Million individuals each investing $1000 than one entity or Corporation with a $Billion having the ability to effect or Steer the market.
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I think that’s true. I want it to remain decentralized.
Been following this development for a while... this is MASSIVE. I'm enjoying seeing more practical utility being rolled out for crypto during this bull run compared to 2017. Next bull run it will be even crazier; I think that may coincide with widespread mass adoption. IMO we're not quite ready for that this time around but getting closer.
We need it to stabilize and provide more it utility. Baby steps my friend.
Great News... Bitcoin to the mooooonnnnn
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I hope all coins join the ride.
This is really huge news!
Let‘s see what this year will happen...
Bright future ahead!
Thanks for sharing with the community :)
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We are in the early stages of adoption. I think the next few quarters will be barometer for the future of the space.
Yes but ... you do not own private keys ...
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There's pitfalls with these systems but I rather get people using crypto and pressuring companies to give them their keys. Robionhood is working on it now.
Oh wow! Amazing news I wonder what the future will hold for Cryptocurrancy and if any will be registered as legal tender.
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It should be and treated like fiat too. Tax/regulation issues are some of the upcoming barriers for adoption.
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I agree with this !ENGAGE 15
ENGAGEtoday.i hate paypal and visa but that they way more people will get into cryptos
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It’s a necessary evil. I think we tried to change the system and now they are starting to see the advantages. The goals is on board and make prepress better. We can’t exclude ourselves because without adoption and utilization of the tech it’s nothing more than a fad.
I hope for a day when we don't have to go back to fiat to buy things I just wish that merchants started to accept crypto payment directly. I thought the whole point of crypto was to get rid of the middle man. But these things are a step in that direction.
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Visa is keeping transactions in usdc which is a start. Stable coins could do what fiat does. I think adoption with actually be on old tech. Everyone is stuck on btc, ETH and usdc when hive is superior.
Such a cool thing to happen!!! Paypal will make money on the conversion charges from CRYPTO to FIAT to pay its Merchants.
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They are the middle man still so they will make sure those transaction go in they favor. It’s a start we just need adoption then optimization.
True, Paypal will at least ensure high-quality services. Don't mind paying a little extra. Still better than ETH GAS Fees. :D
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True that! Now we just need to get hive and Leo on these companies radar. We could be the Facebook killer!
That would be so crazy @cryptictruth. If that happens then definitely we will overtake all the social media platforms available with the current model.
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This must be the biggest news that could shape the whole cryptocurrency world.
And in my oponion that #Bitcoin would hit near $70k if they stay on course.
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We will see. The question is do we sell the news like stocks? I know I'm not.
All in all, an interesting idea. For someone who is not very familiar with stock exchanges or is simply afraid of them, this is a pretty cool solution. It will be interesting to see how things develop.
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Yeah I'm in both space and it's big news for stocks and crypto.
Regardless of paypals reputation with many of us crypto enthusiasts, it's definitely a step in the right direction. I can't say I'll be mixing paypal and crypto any time soon though.
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Me either but I know a lot will!
Indeed, just like many use Robinhood to get into cryptocurrency, people will use what they feel they can trust. They will need to at least give users full use of a crypto wallet before I'd recommend it. Still good for us all though.
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Exactly, it’s the gateway drug to the promised land.
thanks for sharing
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Bullish news
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