The explosion of Bitcoin in 2017 sparked huge interest. However, the majority of payment solution giants such as PayPal, MasterCard, Visa and MasterCard weren’t impressed. They attempted to downplay the importance and even banned their cards and users being connected to digital currency. A few years later, they have changed their mind and now embrace cryptocurrency. Angelo Babb is a FinTech and cryptocurrency expert who discusses why these announcements are important for cryptocurrency’s future growth.
2018 was a year in which Visa was clear about its position that no Visa cards or payment solutions could be used for buying or selling digital currency. It refused to negotiate a refund and shut down many low-level financial institutions and banks that attempted to offer cryptocurrency solutions.
Two years after it banned digital currency, this changed. Subsequently, the company explained that digital currency (or a digital form of cash controlled with a private key) was first created over ten years ago with the launch of Bitcoin. It added that it believed that digital currencies could increase the value and accessibility of digital payments to more people and places. We are committed to supporting and shaping the future role of digital currencies in the world of money.
PayPal, which previously had a cautious approach to cryptocurrency, changed its mind, as well. It now allows its users to sell and buy Bitcoin through their PayPal accounts. The giant payment processor is currently working to open up the possibility for its users to purchase cryptocurrency directly through their PayPal accounts. Babb explains, “This is an enormous indicator of how far cryptocurrency has come. PayPal has over 325 million active users worldwide. This payment method is accepted by thousands across the globe. Its embrace of digital currency will have a profound impact on cryptocurrency’s status as a fiat option.”
Its fluctuating prices have been a long-standing problem when accepting cryptocurrency as a payment method. Despite recent rallies, Bitcoin’s prices have not seen any significant rises or falls. Additionally, there are solutions that allow cryptocurrency payments to be converted immediately into fiat. This guarantees that the payment price will not change after the transaction.
Cryptocurrency was initially created as a peer-to-peer payment system. It allows individuals to manage their own money and not need to use a bank or intermediary. The same purpose of digital currency is to allow the world’s unbanked to access banking solutions.
Babb Simon notes that the possibilities of cryptocurrency are endless, stating, “Near-immediate transfer of funds between people at a fraction of the price and the ability to interact with traditional banking solutions makes it significantly more powerful than traditional fiat options.”
Bitcoin’s global acceptance has grown faster than that of the US dollar, in comparison. Since the creation of the US dollar, it has taken over 100 years to make it a recognized, legal currency. Bitcoin, on the other hand, has only been around for 12 years and is already widely accepted. The support of PayPal and Visa, as well as MasterCard and others, will allow cryptocurrency to move at a much faster pace.