Venmo adds Bitcoin and Altcoins as buy / sell options
This week PayPal’s mobile transaction company Venmo announced that it will allow users to buy, sell and hold cryptocurrencies such as or. Venmo’s acquisition of cryptocurrencies comes as PayPal has been stepping up cryptocurrency approvals since New York regulators received the green light last year.
Venmo is the main competitor of Square’s “Cash App,” which is popular with young adults in the United States. Both Square and PayPal have taken important steps to integrate cryptocurrency usage and have invested heavily in cryptocurrency holdings. Square bought a total of 8,027 Bitcoin in 2020, valued at over $ 170 million.
The app for digital payments can be integrated into Crypto
With over 70 million active users, Venmo is one of the most popular digital payment apps in the US. Payment apps have become famous for allowing users to pay faster or share bills with their friends and family, reducing financial disputes.
App users can access cryptocurrencies like Bitcoin, Ethereum, or just $ 1. Venmo’s social functionality allows users to share their investments with friends through the social feed, creating a more user-friendly way of interacting with cryptocurrencies.
PayPal’s move to accept cryptocurrencies comes as no surprise. With over 377 million active users and growing demand for crypto, the company announced in October 2020 that users could buy, hold and sell cryptocurrency. Additionally, PayPal announced plans to allow users to spend crypto at over 26 million retailers around the world, increasing the use of crypto in retail outlets.
Integration and the need for cryptocurrencies are “inevitable,” as PayPal CEO Dan Schulman pointed out. In addition, he recognized that digital payments of any kind have a “financial inclusion benefit” as they distribute payments across the network more quickly.
Darrell Esch, senior vice president of Venmo, claimed that using crypto on the platform would “allow the community to learn and explore cryptocurrencies,” thereby creating a secure environment for the retail market in which cryptocurrencies could be used. Retail purchases have increased since 2020; However, it does not affect Bitcoin’s ongoing bull run.
To integrate cryptocurrencies into the platform, Venmo worked with the blockchain infrastructure company Paxos, with whom PayPal also created its infrastructure for digital assets.
On the downside
- Elon Musk’s influence on market sentiment has shown that he can control the price of a currency with a single tweet.
- Elon Musk was PayPal’s largest stakeholder and could continue to hold shares in the company.
- Bitcoin retail investors rose in the first quarter despite warnings from economists about price volatility.
- The sovereign ownership of cryptocurrencies is rejected by both Venmo and PayPal.
Financial institutions that invest in Bitcoin
The growth of bitcoin and cryptocurrencies inevitably enables larger investments by larger financial and non-financial entities. While the market is still severely unregulated, a large inflow of capital into the market can raise the price and create a state of euphoria. However, as we’ve seen over the past few months, the market can be manipulated and Bitcoin’s volatility continues to be a cause for concern.
PayPal and Venmo aren’t the only big names to warm up to cryptocurrencies. In March 2021, PayPal announced the purchase of Curve for $ 200 to keep digital assets safe as a cloud service. In addition, through the acquisition, PayPal has increased its presence in currencies to enable faster implementation and use of crypto on the platform.
In early 2020, Elon Musk announced the purchase of over $ 1.5 billion worth of Bitcoin to diversify Tesla’s investment portfolios. In addition, Tesla (NASDAQ 🙂 accepts Bitcoin as a payment method on its website and is developing and expanding the use of Bitcoin. Still, Bitcoin is viewed as a store of value for many investors. Companies such as Tesla, Square or the Chinese listed company Meitu invested heavily in cryptocurrency, and some also diversified into Ethereum as a store of value.
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