Big news today that finance payment giant Paypal is going to incorporate some of the major cryptocurrencies into their system to allow payments to occur. Users will be able to buy and spend Bitcoin and a few other crypto's to make payments through the Paypal network however, there is a catch.
Users won't be able to transfer crypto's into or out of the Paypal system and users won't have control of the keys for their account, making this more of a centralised control which really goes against the purpose and ethos of most cryptocurrencies.
In one step, this is fantastic news for the crypto world that a major finance company like Paypal is willing to step into the realm of Bitcoin and make this a usable currency on their platform.
On the other hand, 'Not your keys, not your coins'! Technically, you purchase Bitcoin on paypal and they can easily with hold the coins from you. Theoretically, they can also do this with any fiat you hold in your account too, so the risk is similar to what is already there.
Square and Robinhood, other finance systems, have allowed Bitcoin for a while and have made millions which is why Paypal is entering this area. I think they will take a slow approach to adoption and then start to open this further to other currencies and hopefully allow transfers of cryptocurrencies into and out of their platform.
What impact might this have for the #HIVE layer 2 tokens that I previously blogged about? Well any exposure to the larger finance world is beneficial for any of the Cryptocurrencies. Imagine being able to buy your legal weed through Paypal with $WEED or using $DEC or $SPT to get some Splinterlands cards!
It will be interesting to see where this leads into the future.
Thanks for reading.
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