There are analysts out there that claim the PayPal-bitcoin relationship isn’t anything special. Now that they are more familiar with the fine print associated with the relationship, they are questioning just how far bitcoin can go with it. However, the sentiment also appears to be that even though the arrangement may not be perfect, PayPal is the best option for bitcoin right now.
PayPal May Not Be Perfect, but It Is Helping
According to a press release issued by PayPal, there are no fees for selling or buying bitcoin through the firm through December 31 of this year. This means that users will have until the last day of 2020 to take advantage of these circumstances. In addition, there are no fees for holding crypto in a PayPal account.
The release states:
Consumers will be able to instantly convert their selected cryptocurrency balance to fiat currency, with certainty of value and no incremental fees. PayPal merchants will have no additional integrations or fees, as all transactions will be settled with fiat currency at their current PayPal rates.
The news led to some doubt, particular from people at Satoshi Labs, who were quick to point out that PayPal has never been a fan of bitcoin, and that permitting bitcoin payments right now was simply an attempt to keep the company relevant. A blog post for the company reads:
Until very recently, PayPal was anti-crypto. Writing in 2018, ex-CEO Bill Harris called bitcoin ‘the greatest scam ever,’ so what’s changed? When a household brand like PayPal starts selling bitcoin, it’s probably not because they want to spur healthy adoption. If millions of newcomers are onboarded to bitcoin by PayPal, there could be a serious information gap that jeopardizes their experience and undermines key principles of cryptocurrency. Time after time, exchanges have lost user funds, often leaving them with no recourse.
The blog garnered agreement from the likes of Peter Smith, the CEO of Blockchain.com. In a recent statement, he referred to the plan as “highly centralized and inflexible” on PayPal’s part. He says:
Crypto is about financial freedom. It’s modern money that anyone anywhere can truly control. While we’re excited to see a new audience gain access, a non-custodial approach limits opportunity to self-custody your crypto or transact freely.
Things Might Be Easier Now
Despite such a high level of doubt from analysts, it cannot be denied that despite certain centralized conditions, the company is opening up the bitcoin door for many people that would otherwise never have gained access or learned how to use it.
A survey shows that more than half of the world’s smartphone owners have downloaded the PayPal app onto their devices. This provides a clear pathway. In addition, roughly 15 percent of the world’s PayPal customers say they are looking to purchase crypto in the coming months. This will also bring their dreams closer to reality.