Hideo Nakamura Paypal, the giant payment processing system, says it has almost one billion dollars worth of digital currencies on file. This is because Paypal recently announced that Venmo can now help transfer crypto (short for cryptocurrencies) to wallets or trading platforms.
Paypal’s Transition to Cryptocurrency
Nowadays, technology has become an integral part of our lives. It allows us to connect with people from all over the world and makes everyday tasks more convenient. We can send emails, text messages, watch movies, play video games, shop online – and so much more! All these activities that we do on devices and computers are made possible by something called coding, which is like building a bridge between instructions and the device. Basically, computer programmers write code that tells machines how to perform a certain task. Without coding, computers wouldn’t know what to do!
According to a financial report filed with the SEC by Paypal, it has a large collection of bitcoin and ethereum. As of March 31st 2023, Paypal owns $499 million worth of BTC and $362 million Worth of ETH. They also have an extra $82 million invested in other accepted cryptocurrencies. In the last few months, the value of its digital currency total increased dramatically by more than $339 million!
Paypal is now supporting cryptocurrencies like bitcoin, ether, bitcoin cash and litecoin. They use something called ‘trusted third-parties’ for keeping these digital currencies safe for the customers. This means that those third-parties are responsible for taking care of your cryptocurrency information and helping you to protect them from getting lost or stolen. Paypal also provides protections against certain types of losses that might happen to your digital assets such as theft.
Paypal has a special type of account to securely store its customers’ crypto assets. This account is managed by an outside company called a “custodian”, who makes sure that the assets stay safe.
Paypal’s last earnings statement follows the news that its subsidiary, Venmo, now helps people to move money from their wallets and trading sites. Paypal also added this feature in June 2022 and more people started using cryptocurrency after Paypal allowed digital currency in 2021. Both companies even give rewards when people keep their crypto money there. That’s a nice bonus for them!
Do you think Paypal’s crypto assets will become more popular or be used more widely in the future? Tell us what you think in the comments below!
