PayPal, one of the largest worldwide payment networks, has approved of BTC to be used as a medium of exchange on the platform for buying, selling, and retaining assets in the form of currency on their centralized wallet. After such a move, the bullish run in the BTC market reached an all-time high to US$12,796 at the time of writing.
What does It mean for Bitcoin in 2021?
Adoption has always been a pressing concern for cryptocurrencies ever since their inception. The legal battle has never shown any signs of settling down with economies interfering in the free use of cryptocurrencies. With PayPal’s adoption of cryptocurrencies like BTC, ETH, BCH, and other Litecoins, the image of cryptocurrencies will transcend beyond just settling up to be a nerd/geek thing. PayPal users amount to roughly 346 million worldwide, and Blockchain and cryptocurrency concepts are known to only 40 million population worldwide, a move like this can broaden the scope for mass-scale adoption of cryptocurrencies in the near future driven by the need for digitalization post the pandemic phase.
Mitigating Pressing Challenges
The key challenge for BTC trading and receiving payments in BTC relates to converting the same into fiat money. With the government imposing stricter regulations, most vendors and individuals avert taking payments in the form of cryptocurrencies. PayPal has announced that the move will benefit US citizens initially by the start of the first half of 2021. They have also planned to integrate the same feature in the Venmo app for easing the money transfer. With the backing of the Paxos Trust Provider, there is a good chance that the mass-scale adoption of cryptocurrencies in the US, where Facebook’s Libra is fighting a regulation war will change significantly.
What Will Be the Impact of PayPal’s Move On Indian Market?
PayPal has already entered India as payment aggregators for top e-Commerce giants like Amazon, Flipkart, and eBay in 2017, following such a move, it is most likely that the company will look forward to extending their cryptocurrency adoption vision to India, one of the growing markets for sustainability. With a lot of hue & cry in the cryptosphere in India following the government banning cryptocurrencies in 2017 and again revoking the ban in 2020 after pressure from the centralized exchange, Indian-digitization vision could expand cryptocurrencies mass scale adoption where along with PayTM, people would start doing BTC or ETH payments like the way it is done in Japan.