Demand for Bitcoin explodes – PayPal increases deposit limit

Bitcoin was not the only product to gain popularity during the corona crisis. Above all, the various payment service providers can look back on a successful year.

The winner here is above all the company PayPal, which was able to meet the increasing demand for digital and contactless payments.

The company processed payments totaling $247 billion in the third quarter of 2020, an increase of 36% over the previous year, while at the same time adding 15.2 million new customers.

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PayPal is in Bitcoin fever

PayPal also announced on October 21st that the company would allow users to buy, hold and sell cryptocurrencies.

Customers from the USA can now buy and hold Bitcoin, Ethereum and two further cryptocurrencies in their PayPal account. Starting from January 1st, 2021 customers can pay thereby also directly with 26 million dealers, who use PayPal.

In a conversation with Dan Schulman, CEO of PayPal, the integration of Bitcoin and Co. was discussed. Schulman said that PayPal is “very interested” in offering this feature.

Demand for Bitcoin and Co. higher than expected

Besides, the enterprise communicated that the interest for Bitcoin and other cryptocurrencies exceeded the expectations of the enterprise. Therefore, PayPal decided at short notice to increase the daily purchase limit from $10.000 to $15.000.

“It was really very high on their wish list,” said Schulman, adding that the waiting list for the use of Bitcoin and Co. was “two to three times as high as our expectations.”

PayPal will also integrate CBDCs

With regard to the digital currencies of central banks (CBDCs), Schulman explained: “CBDCs… are a question of when and how, not whether. He expressed his conviction that, due to the size of the platform, his company could contribute to shaping the benefits of these currencies.

While PayPal’s forecasts for the fourth quarter are lower than originally anticipated, the platform expects transaction volumes of almost $1 trillion this year.

The integration of Bitcoin and Co. was not only long awaited, but celebrated by the entire crypto community. After the announcement, the Bitcoin share price rose by approximately 15%.

As the largest payment system in the world, the company could indeed influence the benefits of CBDCs in the future.

A small step for PayPal and a big step for BTC

However, many crypto industry experts have warned users about the centralized nature of PayPal. Users will not control their own private keys, nor will they be able to withdraw Bitcoin and Co to external wallets or deposit cryptos from another address into their account.

These features are likely to come in the future. However, there has not been an official statement so far. Nevertheless it is an important step towards mass adoption and legitimizes Bitcoin even more.

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(Featured image by Crypto Crow via Pexels)

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First published in CRYPTO MONDAY, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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