In recent years, cryptocurrency – tradeable through Instant Edge have seen a surge in recognition, and their usage has gained traction in the global financial market. Despite the risk of trading bitcoin the use of bitcoin has grown in the last year. According to financial experts that this technology is expected to last and to be a major factor in the coming years.
Governments and financial institutions are monitoring the changes of the digital currency and associated technology. The development of cryptocurrency has provided different players in the global economy new opportunities as well as challenges. Smaller businesses, for instance have found a new growth opportunity while larger corporations are beginning to realize the value and reliability in distributed ledger technology.
One of the latest banks that accept Bitcoin as a payment method for purchases of products as well as services are PayPal. This is a good thing for both the business as well as its customers.
Integrating bitcoin in PayPal’s function
PayPal has achieved its goal of being aware of the changes in the digital currencies since it recognizes the importance of businesses to keep track of changes over time in order to grow. The company said that customers will be able use their accounts to make bitcoin transactions beginning in October this year. This is a smart move since it will not only improve the user experience for current customers of PayPal but also attract prospective customers that are inclined to use cryptocurrency. Additionally, the addition of this type of currency on the platform of the company suggests that users would be able to purchase goods from the thousands of merchants who are registered with PayPal. The company intends to offer this service to its customers around the world in the timeframe it has set. When PayPal announced it would be supporting cryptocurrencies bitcoin, the price was just $12,000. The price has continued to increase since the company’s announcement. At the time of November, 2020 the cost was $18,997. the most expensive amount ever for the last three years.
As per financial analysts, PayPal will soon be purchasing all new bitcoins in the event that the trend continues to grow. This indicates that the business has taken the right decision and is well aware of the immense impact of technology.
Proposed challenges to the introduction of Bitcoin
The use of cryptocurrency at PayPal are subject to limitations as is every other financial program.
- The primary concern is the client’s privacy of data, as all bitcoin transactions can be recorded and executed in public. Customers will need to transfer bitcoins from their wallets to PayPal accounts as well as all transactions can be seen online.
Therefore security could be challenged, particularly by people who are not familiar with bitcoins. It is difficult to establish similar privacy laws for data making use of digital currencies. PayPal already has guidelines on data privacy to protect its customers from unauthorized use of information.
- The second issue is that using bitcoins as money can also create issues with the regulations.
Financial technology companies must follow government-instituted regulatory frameworks. Market operations that are illegal are possible due to transactions on the internet, and the use of cryptocurrency creates a challenge for law enforcement authorities to monitor these criminal activities.
Benefits of the use of Bitcoin to run Paypal’s operations
The integration of bitcoins into PayPal’s financial systems is intended to improve customer interaction with its services. Schuman is the CEO of the company , proposes that PayPal establish a routine service that will ensure that customers are aware of the potential to make the most of the benefits of cryptocurrency.
Because PayPal provides a variety of clients, the widespread adoption of bitcoins will boost the financial accessibility. Online transactions such as peer-to-peer (P2P) and production-to-consumer (P2C) transactions will gain from digital currency. Since fees are virtually zero for bitcoins, the process of transferring cash to others as well as businesses is cheaper. This means that due to the low transaction costs, PayPal and other businesses similar to it are able to bring more customers. Furthermore, the company’s payment system will be more reliable, efficient and swift because of cryptocurrency. Customers will not have to wait as long to see their transactions completed due to this feature.
How to buy Bitcoin on PayPal
- Join PayPal to establish your account.
- Go to “Buy and Sell” under the “Your crypto” section.
- Click on “Bitcoin” and “Buy.”
- Enter the amount of Bitcoins that you would like to buy.
- Select your preferred payment method, then select “Next.”
- Check the conversion rate and processing cost.
Then, click “Buy Now” to confirm your purchase. The Bitcoins will be now present in your PayPal account.