For quite some time now, there have been rumors about PayPal integrates Bitcoin directly at some point. Although the company’s subsidiary, called BrainTree, lets merchants accept Bitcoin already; it is not being advertised in an overly convincing matter. But what is keeping PayPal from embracing cryptocurrency?
Although it may seem appealing for PayPal to accept Bitcoin, there will be some caveats to this system. Knowing the way PayPal conducts its business, they would exert full control over user wallets and account balances at all times. In a way, they would offer something similar to an exchange wallet, with the user never fully controlling their money.
PayPal And Bitcoin Might Not Be A Good Mix
Then again, PayPal remains the biggest online payment processor in the world today. Having such a company officially accept Bitcoin could be a significant boost for cryptocurrency adoption. That does mean they would have to make the whole Bitcoin system opt-out for merchants, though. Using an opt-in system would not do Bitcoin adoption any good.
One possible reason for this inexplicable delay is the recent New York regulation for financial companies dealing in Bitcoin. The BitLicense requirement could apply to PayPal as well if they were to deal with cryptocurrency. At the same time, the NYDFS has announced all financial companies need to set up a dedicated cyber security team, which brings even more costs to the table.
It appears PayPal officials are on the fence when it comes to dealing with Bitcoin. On the one hand,m they are in favor of doing so, albeit it is through a subsidiary right now. On the other hand, the uncertainty regarding regulation and legislative requirements poses a risk the company may not be willing to take.
For now, it appears the payment processing company is still keeping the Bitcoin option. Paypal announced Bitcoin plans over a year ago, even though things have become quiet ever since. But that does not mean there is nothing going on behind the scenes. A bigger question is whether or not PayPal would do Bitcoin any good in the long run, or if cryptocurrency should continue to do its own thing.
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