After years of resisting and fighting against crypto, it’s finally a battle that is coming to an end.
Visa and Paypal are in the news this month, both are reported to be opening the doors to buying cryptocurrencies.
First we saw news surrounding a possible Paypal “buy” and “sell” options for cryptocurrencies. This was reported by Coindesk, the FinanceMagnates, Forbes, Cointelegraph and other sources confirmed it soon after.
From what I hear, the stablecoin Paxos is most likely to be used by Paypal as a gateway to facilitate the crypto transactions. Paypal will introduce crypto trading through Paxos’ new brokerage service. The report follows the July 15 announcement of Paxos’ launch of a crypto brokerage that enables other firms to integrate crypto trading functionalities. According to Coindesk, PayPal will use this new service to deliver its crypto trading features.
Let’s look at the things in perspective: right now, about 35 million people own crypto. PayPal alone will make Bitcoin and other coins available to 325 million people. That’s nearly 10 times the current market for Bitcoin. It’s not hard to imagine what that will do to the market value of the top cryptos (and the whole crypto market in fact).
As of today, just a week after the Paypal announcement, another giant of the Fintech, no other than the biggest in fact, Visa, is making their move toward crypto adoption.
This may come as quite a surprise to many, since Visa has had a rather rocky relationship with crypto to date. In early 2018 we saw a worldwide shutdown on all crypto debit cards that were using Visa as their processor and that was about 80% of all issued debit cards from crypto companies. Later, we had a similar response from Mastercard and for a while the two leaders in digital payment processing resisted entering the crypto space. Furthermore, they even restricted access to crypto by declining “buy” entries from many crypto-related websites.
I know this first hand, as I had a few transactions from Coinbase declined by cards that used to work prior to 2018.
Fast-forward to 2020 and with this new bull cycle, things are bound to be very different from now on.
Visa has clearly changed their tune about crypto and Bitcoin in particular. They wrote this week in a blog post titled “Advancing our approach to digital currency”:
“We believe that digital currencies have the potential to extend the value of digital payments to a greater number of people and places. As such, we want to help shape and support the role they play in the future of money.”
Well, this is a complete 180 degree turn for Visa and I cannot be happier for it.
This means more crypto-adoption in the wider spectrum of Fintech, more user adoption in the retail investing sector (we need that right now) and ultimately, the end-goal: more merchant adoption (still a long way from that, but we’ll get there).
Visa, pointing to its work with bitcoin and crypto exchange Coinbase and bitcoin rewards app Fold, said it wants to “provide a bridge between digital currencies and our existing global network of 61 million merchants.”
At the same time, Mastercard is reportedly “extending its cryptocurrency program to make it easier for companies in the space to issue their own payment cards”, signing a deal with London-based Wirex, making it the first “native” cryptocurrency platform to gain principal membership and allowing Wirex to directly issue cards on Mastercard’s network. As a user of Wirex card myself, I am delighted from this news too. It’s a card that has served me well for the past couple of years and I am looking forward to seeing more of these being used in the future. You can get yours and star using it straight away as it’s already available.
In conclusion, I must add that we can expect enormous growth in the crypto space in the coming two years, a new ATH in Bitcoin and all major altcoins is guaranteed and you can take advantage of this hyper bull-run that just started without much trepidation.
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