Bitcoin Forum

Possibly sparked by the rumor that the online money transfer company PayPal might get involved with cryptocurrencies, the bitcoin (BTC) price jumped more than 4% yesterday, before falling back slightly Tuesday morning.

The unconfirmed news that PayPal might enable direct buying and selling of crypto might have been the main driver for yesterday’s market rally, leading to green numbers across the board in both bitcoin and most altcoins.

The move in price was also noticed by the blockchain analytics firm Glassnode, which shared an alert today saying transaction volume on the bitcoin network has “increased significantly” over the past 24 hours.

https://cryptonews.com/news/paypal-rumors-push-bitcoin-higher-as-on-chain-transactions-s-6917.htm

https://cimg.co/w/articles-attachments/3/5ef/1ccbd750cb.jpeg

Morons..
https://twitter.com/glassnodealerts/status/1275387039693910017

https://i.imgur.com/mTVQfxX.png

The so-called surge is happening weekly, it's the difference between Sundays and Mondays, this is how it looks for 30 days, notice that 31May, 7th, 14th and 21st of June are all Sundays:

https://i.imgur.com/1Dg0XVN.png

lol.  Those pics are worth 1000 words. 

PayPal getting involved in BTC at this point seems pretty unlikely given the KYC requirements.  While they no doubt do know their customers, the difference between PayPal and, say, Coinbase in the KYC requirements seems huge.  (I haven't had to register for either in quite some time so perhaps that has changed).

If this rumor is somehow true and Paypal decides to add Bitcoin as one of their recognized currency I won't still store my Bitcoin in that website, with chargebacks and a centralized authority this wouldn't really mix well in the crypto industry as proven by custodial wallets. Yeah we will have a good option for capturing the general audience but it wouldn't really attract me going with them. There power on what they can do with the funds I have is something that would really make me stay away in what they might be offering in the future.

Its better to stay on where theyre currently rather than considering on adding up btc/crypto. Its fully contrary i shall say and i dont know on how it do looks like when two things collaborate.

Same as you said i wouldnt touch this one in talks of storing or making it as a payment system towards my btc tx's. We know that there are lots of options out there that we have

been used to and also much more safer since theres no intervention of any service or whatsover.If they decide to push it up then let them be and lets see on how many

crypto users will bite.

How huge was the difference during the time when you have registered? Also, how many users does Paypal presently have that has done KYC already?

With regards to Paypal implementing Bitcoin as one of their cryptocurrencies I believe their transactions would mostly be done off the chain meaning these Bitcoin transactions will be done not in Bitcoin's blockchain but with Paypal's payment gateway simply because if they don't do this they are literally just like a normal wallet for any crypto users out there. At least by having their own payment gateway for Bitcoin they could justify the fees and transaction time they will want to implement with the introduction of Bitcoin in their service.

i have a verified paypal account from years ago that i occasionally still use. i don't believe i've ever given them my SSN, address, scan of driver's license or selfie---which have become standard KYC on licensed/regulated platforms like coinbase and square cash app.

if the rumors are true, i bet they'll operate it as a segregated service where people who buy/sell crypto will be subjected to a higher level of KYC.

@figmentofmyass. I speculate that Paypal might only follow what Neteller has done. They might create a cryptocoin brokerage service that cannot withdraw your funds in cryptocoins.

https://bitcointalk.org/index.php?topic=5157284.msg51567659#msg51567659

rumor has it that it will go further than that, with full wallet functionality and buy/sell capabilities:


i think that makes sense---paypal would be leveraging their market share against competitor cash app, whose popularity is rising fast on the back of its bitcoin service.

@figmentofmyass. They might treat their customers similar to how online stock brokerages treat them in America, however. Anyone who does not reach the annual income required might not be qualified to use their service to purchase bitcoin.

that's doubtful IMO. robinhood crypto, coinbase, square---none of them have those restrictions. i assume paypal would follow one of those models.

online stock brokers aren't restricted to accredited investors either. specific products and funds are. for example, if you wanna buy into one of grayscale's private GBTC placements you have to be an accredited investor, but retail investors can still access GBTC through their online broker or retirement account.

In the case of Neteller, it is all Mastercard fault since it refuses to allow its cards to be used by FIAT exchanged from cryptocurrencies.
PayPal can do like Neteller and in this case its solution can be better. In my opinion nothing of this will happen

Paypal....LULZ  I don't even trust them with my cash so there's no way I'm gonna trust them with my crypto. When a money grabbing organisation like paypal gets involved with Bitcoin you know it's just another money grab. Who on earth is gonna trust a wallet run by paypal? Besides, Bitcoin doesn't need paypal, it is a replacement for paypal & far safer.

Unsurprisingly, these rumors have mostly been circulating in pro-crypto news agencies and blogs. I'm not surprised they're not coming from a reputable source. Corporations don't tend to allow such news to go out early ahead of their planning. If it wasn't anything more that an unsubstantiated rumor it would have gotten a mention from official channels of paypal... Instead we get the same news from outlets that have pro-crypto bias over the last few days. But even if PayPal touches BTC, the way they do so is going to be the thing making a difference or not. It's entirely possible they do it in a way that most users even fail to notice. Probably not in their interests though anyway.

If paypal will accept directly buy and sells cryptocurrencies is going to be good for crypto but not for paypal.
Paypal is known because you can make an account and make money transactions with just an email. If cryptocurrencies will come to place then there will be needed more information in order to open accounts that might make Paypal loose clients.

What additional information would I need to open an account? Users could use their email as well to make a BTC transaction, (without asking for anything else, it's not something so difficult to add). In the same way, you can send or receive different currencies with the same email.

Even if Paypal asks for additional information (imagine something related to BTC, an address, or whatever) the company cannot force people if they are not planning to use Bitcoin.

It's really not something that would cause Paypal to lose customers.

You have to be verified so that you can spend the money that was transferred to you and that means you are required to submit additional information.

It's still unknown how they will integrate crypto with their business.

Edit: unverified Paypal accounts can spend money that was sent to them.

Not even true, you're twisting a potential problem @Naida_BR was talking about, and making it unrelated.

You don't need to be verified to spend the money you received. Being unverified you can of course spend it as you wish at any merchant. And the method you posted doesn't even ask additional information by the way. When you link your bank account or debit card, you receive a code on your bank statement. And you need to copy the code to your Paypal account.

Is that what you're calling submitting additional information ?!?

scan of your ID like driver's license or passport, selfie holding your ID, taxpayer ID#. none of these are required for a paypal account, but they are now standard on regulated bitcoin/fiat exchanges.


i don't see it affecting existing customers. paypal would just just impose additional KYC if you wanna trade bitcoin.

I misunderstood the process of spending and being unverified and as well as understanding the term additional information. As for the verification, I considered the confirmation and addition of bank details and linking it as 'additional information' which is really a requirement by PayPal. I have already edited my post, thank you very much for correcting me.

They don't ask for a selfie. You can use Paypal without giving much info if you only spend a little. They have some limits that once you go over them they require you to submit some sort of ID and confirm your address and I think they lock your funds until they do. It's kinda weird how they don't require that info straight away as PayPal is a scammers paradise and anyone can open an account in minutes without any checks yet to deal with a bitcoin-based service you have to jump through numerous hoops.


Regardless of whether you like them or not it still would be huge... but I don't believe this rumour until I see some evidence. People have been saying the same thing for the past five years and nothing has happened so far. Maybe they will start dealing with cryto at some point but until I hear it from them I won't get excited.  

https://www.coindesk.com/paypal-picks-paxos-to-supply-crypto-for-new-service-sources-say

According to that Paxos have been chosen to handle Paypal's crypto side.

I'm still expecting it to be like Revolut and only offer you price exposure and Paxos seem well qualified to supply that. If it goes beyond that I'll be rather surprised.

Same here, the moment they mentioned Revolut all the enthusiasm went down if they will take the path of simply converting your funds to BTC and only sending BTC between PayPal accounts without the option of actually withdrawing coins probably only a few will buy into.
People don't store their money on PayPal, I don't see any reason why they would store virtual coins

But interestingly they dropped Coinbase


all my instincts tell me I should be happy about it!

It probably won't be any use to us, but it would still be huge for adoption. Anything that makes it easier for your mom or gran to get involved is good in the grand scheme of things.


Probably wanted too much fees. PayPal will already be trying to make a decent mark-up on things as that's the price people pay for ease of access.

according to paxos's press release for their new brokerage service, sending capabilities can be integrated into partner applications. https://www.paxos.com/paxos-crypto-brokerage-revolut-press-release/

i agree it's unlikely in paypal's case, but maybe they'll surprise us.

I do not understand these services. Does Revolut and Paxos allow their users to send bitcoin to their own wallets or not? Was I correct in my first assumption about the similarities of bitcoin usage in Paypal and Neteller?

you can't withdraw bitcoins with revolut. it's like robinhood.

paxos proper is mainly for institutional investors---custody, OTC broker (itbit), stablecoin issuance and redemption. customers can withdraw bitcoin and other crypto.


probably. technically, paxos built their third party brokerage service (which paypal presumably will be using) to include external crypto transfers so the matter isn't set in stone yet.

@figmentofmyass. It might only be similar to Neteller. Paypal want cryptocoin value coming in, however, it does not want to become a platform for money laundering similar to what many exchanges are, I reckon.

The skeptical me speculates that this might be a government supported move to make users use cryptocoins bounded in only a speculative manner hehehe.

I am sure that after PayPal announced this the price of Their shares soared

News is always brought up under the price for those who want to justify the rise in price. In fact, Bitcoin's rise or fall is independent from Paypal news. It does not depend on other news either. Bitcoin moves exclusively technically according to all the laws of technical analysis. And the news will always be found.