ZB Academy: Some opinions after PayPal supports cryptocurrency
On the evening of October 21, payment giant PayPal announced its entry into the cryptocurrency market, allowing customers to use the company’s online wallet to buy, sell and hold bitcoin and other cryptocurrencies. The company said in a statement that from early 2021, its users will also be able to use cryptocurrency to shop at 26 million merchants on its network.
Subsequently, Paxos chief executive officer and co-founder Charles Cascarilla announced that Paxos began to support PayPal’s new service, allowing American users to buy, hold and sell crypto assets directly from the PayPal e-wallet.
The announcement of this news has an unprecedented and huge impact on the PayPal community, the entire cryptocurrency industry, and of course Paxos.
Charles Cascarilla also said that Paxos is very proud to provide PayPal with the underlying platform for encrypted asset services. PayPal and Paxos are working together to promote the construction of an open digital economic system. Paxos Crypto Asset Broker provides crypto asset custody and trading for PayPal. Its API allows PayPal to provide the original simple and intuitive user interface within its application and seamlessly provide encryption services.
For users buying and selling and holding cryptocurrency, according to PayPal’s official website information, after PayPal supports users to buy, sell and hold cryptocurrency, Paypal will not provide users with private keys, and the platform will only show users their crypto asset balance. In addition, at present, users can only hold encrypted currency in the Paypal account, and the encrypted currency in the account cannot be transferred to other accounts in the Paypal system or outside the system.
As a payment giant, PayPal has an influence on the market far beyond imagination, and a variety of factors will also be involved. Therefore, there are many discussions about PayPal’s behavior in the market.
First of all, after the news was released, Ripple CEO Brad Garlinghouse tweeted: “Two steps forward, one step back. It’s great to see a payment pioneer move forward, but what’s disappointing is the basics of some cryptocurrencies. The principles or benefits were rejected. I suspect that PayPal is worried about regulatory uncertainty, which has affected its launch on multiple levels.”
ZB.com Research Institute believes that it is related to CBDC. They stated that PayPal supports cryptocurrencies such as Bitcoin and actually provides purchase, storage and payment functions. According to PayPal’s disclosure: In a cryptocurrency payment link, users paid bitcoins, but merchants still received fiat currencies settled by PayPal. This is very similar to many cryptocurrency payment tools in the past, and it is a classic model that can be more widely supported. At the same time, it can be considered that PayPal supports cryptocurrency payments this time because, on the one hand, cryptocurrencies have sufficient market demand, and on the other hand, they may also be ready for the possible use of CBDC payments in the future.
As of press time, according to the official market data of ZB.com, the current Bitcoin price is US$12,965; the highest 24-hour price is US$13,180; the 24-hour increase is 1.72%.
About ZB Group
ZB Group was founded in 2012 with the goal of providing leadership to the blockchain development space and today manages a network that includes digital assets exchanges, wallets, capital ventures, research institutes, and media. The Group’s flagship platform is ZB.com, the industry leading digital asset exchange. The platform launched in early 2013 and boasts one of the world’s largest trading communities.
ZB Group also includes ZBG the innovative crypto trading platform, and BW.com, the world’s first mining-pool based exchange. Other holdings include wallet leader BitBank, as well as exchange brands ZBM, ZBX and Korea’s Bithi.
Industry intelligence and standards are headed by the recently launched ZB Nexus who embody the core values of ZB Group and open-source their reports and analysis for the public.
Learn more about ZB Group by visiting www.zb.com.
