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PayPal will support cryptocurrencies, pay bitcoins will also go in stores

The price of bitcoin in response to the news began to rise significantly and exceeded this year’s maximum.

PayPal hopes the new service will support the global use of virtual currencies and prepare its network for new digital currencies that could be developed by central banks and companies, said PayPal President and CEO Dan Schulman.

“We are working with central banks to think about all forms of digital currencies and what role PayPal could play,” Schulman said.

U.S. account holders will be able to buy, sell and store currencies in their wallets on the PayPal platform in the coming weeks. The company plans to expand to other countries and its Venmo application in the first half of next year.

Cryptocurrencies will be supported by other financial technology companies

Other leading financial technology companies, such as Square mobile payment provider and Robinhood Markets stock trading applications, also allow their users to buy and sell cryptocurrencies.

However, the involvement of PayPal is a significant event due to its reach. PayPal has 346 million active accounts worldwide and processed $ 222 billion ($ 5.1 trillion) in its second quarter.

“The inclusion of cryptocurrencies, led by bitcoin, in the PayPal payment system will increase the popularity of the use of these currencies, especially among ordinary consumers, who will have a reason to invest more in these alternative instruments. Cryptocurrencies currently offer an interesting appreciation in the tens of percent, and demand for them in the Czech Republic has increased by about a fifth this year. They are also to some extent immune to the current impact of the pandemic, which is reflected in the decline of capital markets, “said Martin Stránský, director of Bitstock.com.

Logo bitcoinu

Photo: Jim Urquhart, Reuters

Bitcoin broke the record

Bitcoin responded to PayPal’s announcement with significant growth. Practically in the last two weeks, the exchange rate of the most unknown cyber currency in the world has fluctuated around $ 11,500 (CZK 263,670), in September it was even a thousand dollars less (CZK 22,930). One coin traded around $ 10,500 (CZK 240,770) at the beginning of the new school year.

Already on Wednesday – shortly after the announcement of PayPal – however, the exchange rate jumped to $ 12,280 (CZK 281,530), but shortly after midnight the exchange rate climbed above the imaginary threshold of $ 13 thousand, namely one coin traded for $ 13,190, which corresponds 303 370 CZK.

The most famous cyber currency in the world has not had a higher value this year. The exchange rate fell slightly during Thursday morning, but that does not change anything to break the record. The current value is $ 12,776 (CZK 294,040).

Development of bitcoin value over the last week

Photo: Martin Havelka, News

Bitcoins and other virtual currencies

There are many virtual currencies. One of the oldest and currently the most popular are the so-called bitcoins. They were created in 2009, but have enjoyed greater popularity in recent years. This currency was designed so that it could not be influenced by any government or central bank.

Cyber ​​coins are “minting” a network of computers with specialized software programmed to release new coins at a steady but declining pace. The number of coins in circulation is expected to reach 21 million in the end, which is to be around 2140.


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