Paypal payment platform accepts to convert digital money into real money

According to the recent announcement, Paypal Holdings Inc has accepted for US customers to use virtual money to withdraw real money. This move is likely to stimulate the appreciation of a series of digital currencies in the world.

Specifically, American consumers who own Bitcoin, Ether, Bitcoin Cash or Litecoin in Paypal’s e-wallet can exchange for real money at its locations. This service was piloted by Paypal in late 2020 and will be available across all 29 million branches of the company next month.

” This is the first time you can use digital money as a form of withdrawal card or credit card through the Paypal e-wallet ,” said Chairman Dan Schulman.

Since the beginning of the year, the market’s most popular digital currency, Bitcoin, has risen almost 100% due to the participation of many major financial institutions when betting on the anti-inflation of cryptocurrencies.

Paypal’s move comes less than a week after Tesla announced the acceptance of selling electric cars with Bitcoin. However, instead of having to go through a real money exchange like Paypal, Tesla said it will accept direct payments in Bitcoin.

However, Bitcoin payment cannot become a movement due to its excessive price volatility. Paypal expects this can be changed by making the digital currency a public entity market, thereby limiting the speculative risk of investors.

” We think this is a transitional point where a cryptocurrency from a conventional asset class becomes a legitimate financial resource for real-world transactions with millions of middlemen ,” Schulman said.

As expected, Paypal will not charge transaction fees in digital currency and each purchase can only use one virtual currency.