Why You Shouldn’t Use PayPal’s New Bitcoin Wallet
PayPal with the prefix “crypto”: where the payment giant will go
PayPal is changing the attitude towards cryptocurrency
The Libra idea is a thing of the past, now Bitcoin is the priority
It is possible that the payment giant will change course again in the future.
PayPal, a payment service known for its conservative approach to cash, is set to launch support for BTC. This is far from the first attempt by the digital payments giant to get on the track of the crypt, but now it looks, to put it mildly, hypocritical. Understanding why.
For more than 20 years, PayPal managed to visit the payment system of the great and terrible eBay, bask in the rays of Elon Musk’s glory even before he became the main cosmic genius of our time, and also participate in a number of dubious collaborations. One of them – friendship with the startup Thyngs in 2017, gave PayPal the resources for contactless payment via QR codes, NFC and other high-tech delights. The next step of the company is quite logical: servicing cryptocurrency transactions and storing coins on the balance of a personal wallet.
By the way, the local player WebMoney is already stirring up the crypt with might and main, despite the fact that within Russia it has a very controversial legislative basis. By the time PayPal finally decided to enter the cryptocurrency market, only the lazy developer had not yet provided their own crypto wallet, crypto widget and others like them..
Market competitors (albeit not so large) also entered the game and the sloppy giant paid attention not to Ethereum, not to Bitcoin, but to the brainchild of Zuckerberg, which has sunk into oblivion Libra In June 2019, Facebook announced preparations for the release of the digital currency Libra … The social networking project immediately attracted attention … More. And this despite the fact that all in the same 2017, the company indiscriminately blocked any wallets that were suspected of crypto activity. So much for the misunderstanding. First the witch hunt, then the transformation into cryptophiles.
How hard it is to be a leader
Wait, why not Bitcoin? And in this matter interesting details have ripened. Last year, 2019, the CEO of PayPal Inc. Bill Harris bluntly called BTC a scam, not even believing in the success of this crypt. Well, I made a mistake for several years, slept, thought about something else. It happens to everyone? And this at a time when PayPal, along with Visa and MasterCard, contributed their $ 10 million pretty penny to the general development fund of the Libra startup..
The further fate of this money is unknown to us, and the project naturally went into decline. Then the discourse was completely different: cryptocurrencies are the future of digital payment methods. And the future belongs to Libra, regardless of what other cryptocurrencies are..
Everything would be fine, but the news that PayPal now meets the main cryptocurrencies with bread and salt and supports it in every possible way, can speak of several things:
- Firstly, it is the fear of losing a leading position and the monopolist’s right to manipulate the market..
- Secondly, the tightening of legislation deprives the main payment systems of large clients who, at least partially, but transfer money into cryptocurrencies and calmly use blockchain technologies.
- Thirdly, the rejection of internal transfers, which caused a lot of noise in the Russian-speaking segment of the Internet, suggests that not everything is calm in the company..
Of course, the subsequent information denied the end of the translation activity. Representatives of the company said that they had in mind only a revision of algorithms and strategies for working in the Russian market. But we know what this means in the long term: another IT giant, Microsoft, said the same when it was curtailing its activities in Russia. But there is still a long way to panic: the service is working, money is spinning. So, “MyOffice” is registered to a legal entity in the Russian Federation and for some reason wins all tenders for software provision of state institutions of Russia. Maybe they want to do the same with PayPal?
Who is dad?
In a few months, PayPal and Venmo will jointly launch cryptocurrency support in users’ wallets. How successfully they will enter the crypto market and whether they will stay there for a long time is unknown. However, we are definitely waiting for something interesting this fall. The world is changing rapidly, PayPal is a decade slower. And it remains to be seen whether the giant will change his shoes again and echo Trump, calling private crypto companies bad words.
The author of the article is the founder of the boutique consulting agency CryptoDiplomat.ch Georgy Paliani.
This material reflects the point of view of the author, which may not coincide with the opinion of the editorial staff of BeInCrypto.
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