Demand for Bitcoin explodes – PayPal increases deposit limit

Bitcoin was not the only one to gain popularity during the corona crisis. Above all, the various payment service providers can look back on a successful year.

The winner here is above all the company Crypto Profit PayPal, which was able to meet the increasing demand for digital and contactless payments.

The company processed payments amounting to 247 billion US dollars in the 3rd quarter of 2020, which represents an increase of 36% over the previous year, while at the same time 15.2 million new customers were added.

PayPal is in Bitcoin fever
PayPal also announced on 21 October that it would allow users to buy, hold and sell crypto-currencies.

US customers can now buy and hold Bitcoin, Ethereum and two other crypto-currencies in their PayPal account. As of January 1, 2021, customers will also be able to pay directly to 26 million merchants using PayPal.

In a meeting with Dan Schulman, CEO of PayPal, the integration of Bitcoin and Co. Schulman said that PayPal is „very interested“ in offering this feature.

Demand for Bitcoin and Co. higher than expected
The company also said that the interest in Bitcoin and other crypto-currencies has far exceeded the company’s expectations. PayPal has therefore decided to increase its daily purchase limit from USD 10,000 to USD 15,000 at short notice.

„It really was very high on their wish list,“ said Schulman, adding that the waiting list for the use of Bitcoin and Co. „was two to three times higher than our expectations.

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PayPal will also integrate CBDCs
With regard to the digital currencies of central banks (CBDCs), Schulman said: „CBDCs … are a question of when and how, not whether. He expressed his conviction that, due to the size of the platform, his company could contribute to shaping the benefits of these currencies.

While PayPal’s forecasts for the fourth quarter are lower than originally anticipated, the platform expects transaction volumes this year to reach almost $1 trillion.

The integration of Bitcoin and Co. was not only long awaited, but celebrated by the entire crypto community. Following the announcement, the Bitcoin price has risen by approximately 15%.

As the largest payment system in the world, the company could indeed influence the benefits of CBDCs in the future.

A small step for PayPal and a big step for BTC
However, many in the crypto industry have warned users of the centralised nature of PayPal. Users will not control their own private keys, nor will they be able to withdraw Bitcoin and Co. to external wallets or deposit cryptos from another address into their account.

These features are likely to come in the future. However, no official statement has been made so far. Nevertheless, it is an important step towards mass adoption and legitimises Bitcoin even more.