I had to laugh a bit at this story this morning…
Apparently, fintech pioneer PayPal are about to launch cryptocurrency services for their 305 million users.
I laugh because it was around about three years ago that PayPal froze my account for trying to buy bitcoin through them…
At the time they didn’t allow such transfers even though cryptocurrencies weren’t illegal.
They just ‘decided’…
Anyway, three years later, here we are.
Cryptocurrencies haven’t gone away. In fact, they’re stronger than ever.
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And as I’ll explain shortly, they could even be the one rare spot in finance where investors can generate some interest on their savings right now.
More on that next.
But first, what’s PayPal’s strategy and why is it a big moment you need to pay attention to…
…then you win
‘First, they ignore you, then they laugh at you, then they fight you, then you win…’
The famous quote from Gandhi could have been written for cryptocurrencies.
I’m sure you’ll remember the mocking headlines from a few years back.
It was pretend money, it wasn’t real, it was a con, it was only used to buy drugs etc. The mainstream journalists happily toed the party line.
Even today, few in the mainstream realise the significance of cryptocurrencies. Or the game-changing nature of the technology behind it.
(Hint: Decentralisation is the innovation.)
But perhaps this latest move from PayPal will pique their interest again?
According to the Daily Hodl:
‘One of three sources tells Coindesk that PayPal will work with cryptocurrency exchanges and appears to be exploring a partnership European Bitcoin exchange Bitstamp and expanding its partnership with Coinbase which already allows US, European and Canadian crypto customers to withdraw their fiat balances to PayPal.
‘PayPal has the kind of brand name that could help cement Bitcoin and other cryptocurrencies as mainstream forms of money.
‘At the same time, PayPal would become another middleman, “working with multiple exchanges to source liquidity,” according to the report, to bring peer-to-peer cryptocurrencies to the masses.’
It’s not the first time a big fintech company has tried to muscle in on the crypto action.
You’ll recall last year that Facebook made headlines stating they would be launching their own cryptocurrency, Libra.
PayPal was actually one of the 28 original corporate partners in this project but quickly withdrew as it became clear Facebook’s grand ambitions were not going to succeed due to regulatory concerns.
This move into ‘crypto proper’ seems to be an admission that true cryptocurrencies are where the real opportunity lies.
And PayPal is making a play to be part of that infrastructure.
Perhaps the latest crypto trend of ‘yield farming’ is behind the move too?
This is a way to generate ‘interest’ from your cryptocurrencies and it’s taken the crypto…