In October 2020, PayPal, the world-renowned digital payment platform, announced its foray into the cryptocurrency market.

This landmark decision meant that the platform’s vast user base, consisting of hundreds of millions of individual consumers and millions of merchants, could now buy, hold, and sell cryptocurrencies directly from their PayPal account.

In addition, transactions can be conducted using these digital currencies. This article will delve into PayPal’s journey into the cryptocurrency market, dissecting its significance and the implications it holds for the broader crypto industry.

Background on PayPal

PayPal, Inc., founded in 1998 by Max Levchin, Peter Thiel, and Luke Nosek, initially aimed to provide security software for handheld devices.

However, the company’s focus shifted to digital payments, leading to its significant growth and recognition as a premier online payment platform. PayPal went public in 2002 and was acquired by eBay later that year, securing its position as the primary payment method for eBay transactions.

Under the stewardship of Dan Schulman, the current CEO, PayPal has continued to evolve and innovate to maintain its competitive edge in the rapidly changing digital finance landscape. Now independent of eBay since 2015, PayPal has served over 300 million users worldwide, facilitating payments in over 100 currencies.

In terms of cryptocurrency engagement, PayPal has shown interest for some years. In 2014, PayPal partnered with three major Bitcoin payment processors—Coinbase, GoCoin, and BitPay —to allow its merchants to receive Bitcoin payments. This move was seen as PayPal testing the waters of digital currency. It was poised to change the game in digital finance once again with its full entry into the cryptocurrency market,but that came later.

The Rise of Cryptocurrency

The rise of cryptocurrency has garnered a lot of attention. Initially regarded skeptically, cryptocurrencies have steadily gained traction and are now considered legitimate financial assets by many global investors and institutions. The global cryptocurrency market, estimated to be worth around $1.05 trillion as of mid-2023, is charact