PayPal’s encryption ambitions are more than just a drunkard?

The encryption banner of American online payment giant PayPal has another victory, this time it is the United Kingdom!

Following the launch of its encryption service in the United States in October last year, PayPal said on Monday that starting this week, UK customers will be allowed to buy, hold and sell digital currencies (BTC, BCH , ETH or LTC ) with a minimum purchase price as low as £1 .

The outside world generally believes that this means the first expansion of PayPal’s cryptocurrency services in the world, which is of great strategic significance; at the same time, PayPal’s move also injects a certain degree of confidence into the crypto industry, which may inspire new asset classes in the mainstream market in the future Further adoption.

It is understood that the encryption service launched this time is the same as the encryption service version in the United States. PayPal will rely on New York-supervised digital currency company Paxos to conduct encrypted transactions in the UK.

Why did PayPal choose the UK as the first stop for overseas expansion?

Public information shows that PayPal was established in 1998 and listed on the Nasdaq for the first time in 2002. After it was split in 2015, it once again landed on the US stock market as an independent company. So far, PayPal has developed as an independent company.

As of now, PayPal has more than 400 million active accounts and processes nearly 5 billion transactions every quarter, making it a veritable global payment giant.

But why did PayPal choose the UK as the first stop for overseas expansion?

On the one hand, the UK’s current encryption foundation is relatively good, and the encryption awareness of ordinary investors and professional investors is getting stronger.

Let’s first look at ordinary investors. A recent survey by the Financial Conduct Authority (FCA) in the UK shows that about 78% of adults have heard of cryptocurrencies. At this stage, more than 2.3 million people in the UK hold cryptocurrencies. Moreover, British people’s views on cryptocurrency have changed dramatically. Investors no longer regard cryptocurrency as a gambling, but a serious investment or a substitute for traditional investment.

For professional investors, a research commissioned by Nickel Digital, a European digital asset management fund, found that 74% of UK institutional investors and wealth management institutions plan to increase their exposure to crypto and digital assets from now to 2023, while nearly a fifth Second, investors indicated that they would substantially increase their exposure in the next two years.

On the other hand, as the largest financial mecca in Europe, although many officials have negative opinions on cryptocurrency, so far, the United Kingdom has not formulated any specific legislation specifically targeting the crypto industry, but has chosen to be quite tolerant of the crypto industry. Attitude. The most obvious is that the UK currently does not ban any kind of cryptocurrency, nor does it impose strict requirements on cryptocurrency to apply to any existing financial laws.

At the same time, the Bank of England’s digital currency research is also in full swing, and it has declared to ensure that it is at the forefront of the world.

Because of this, when talking about the advancement of encryption services in the UK, the head of PayPal’s blockchain, encryption and digital currency said in an interview: “Encryption products have performed very well in the United States. We expect that the UK will achieve good results. “

However, there are also views expressing concerns.

Alex Mashinsky, CEO of Celsius, a crypto lending platform, predicts:

“PayPal may cause millions of new users to enter the crypto space. However, due to the volatility of crypto assets and tax filing requirements, they may face a “tax nightmare.” “

Seven-year crypto journey: PayPal is more than just trading and payment services

PayPal’s exploration in the field of encryption goes back 7 years.

After several years of development, PayPal’s attitude towards cryptocurrency is obviously more positive, and the context of its crypto exploration has gradually become clear.

PayPal's encryption ambitions are more than just a drunkard?

(Drawing: Ouke Cloud Chain )

But obviously, this is not the end.

As the president and CEO of PayPal said in an interview before, it is hoped that the service will encourage the use of virtual digital currencies on a global scale and prepare a network for new digital currencies developed by central banks and enterprises. In addition, he also revealed that PayPal is working with the central bank to consider various forms of digital currencies and how PayPal can play a role.

In response to PayPal’s encryption layout in recent years, a researcher from Ouke Cloud Chain Research Institute said:

“On the one hand, as the world pays close attention to and researches on CBDC today, PayPal cooperates with central banks of various countries to ensure the legitimacy of related businesses from the policy level; on the other hand, PayPal holds massive customer resources and is expected to become an important channel for the implementation of CBDC in various countries. Therefore, the opening of cryptocurrency trading is likely to prepare for supporting CBDC. In other words, it may be hoped to further occupy the market through CBDC and consolidate its position as a global payment giant.”

But he admitted that although the market is generally optimistic about PayPal’s entry into the UK market, considering the high volatility of cryptocurrencies, compared with other mainstream payment systems, ordinary transactions (non-cross-border transactions) are slower and more costly , Is obviously more attractive to speculators ; in addition, due to different laws in various countries, how to face supervision and pay taxes on cryptocurrencies in the future will be a long-term problem to be considered.

Nowadays, not only PayPal, but the giants of the entire payment track such as Visa and MasterCard have also accelerated the pace of encryption. They are either brewing on their own to try to issue their own cryptocurrency, or they are working with one crypto company after another to expand new businesses.

It is undeniable that encrypted payment is still in its infancy, but as the cryptocurrency continues to break the circle, the market gradually accepts and recognizes it, and the value of cryptocurrency as a payment medium will inevitably continue to be tapped in the future.

 

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/paypals-encryption-ambitions-are-more-than-just-a-drunkard/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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