The global crypto market cap touched an all-time high of $1.9 Trillion, significantly increasing over the last day.
The crypto market started this new year with an overall market capitalization of about $750 billion. Looking at the current market cap, it’s evident that the most notorious industry of the decade has got a strong foothold in the market now.
According to the data provided by CoinMarketCap, two of the world’s largest cryptocurrencies, Bitcoin and Ethereum, collectively hold a market cap of over $1.3 Trillion alone.
The global crypto market cap was maintaining its position to somewhere around $1.7 Trillion in the month of March 2021.
So, what’s the cause of this sudden boost in the crypto market cap? It’s PayPal Holdings, Inc.
PayPal Launches New Feature for Crypto Users
It wasn’t long ago when PayPal announced its integration of digital currency support on October 21, 2020, following which the users, ever since, could buy, sell and hold cryptocurrencies on the platform itself.
Being one of the first legacy institutions, PayPal is now looking to expand the utility by allowing its users to use their crypto holdings as a mode of payment at merchants across the US.
And, that’s correct!
PayPal’s recent crypto announcement pushed the market cap of digital currencies to reach a new high.
Dan Schulman, president and CEO, PayPal, said –
“As the use of digital payments and digital currencies accelerates, the introduction of ‘Checkout with Crypto’ continues our focus on driving mainstream adoption of cryptocurrencies while continuing to offer PayPal customers choice and flexibility in the ways they can pay using the PayPal wallet. Enabling cryptocurrencies to make purchases at businesses around the world is the next chapter in driving the ubiquity and mass acceptance of digital currencies.”
The 4 Big Questions
Ever since PayPal announced its new feature on March 30, 2021, the internet has been flooded with a lot of questions wanting more clarity towards the announcement. Here we bring you the four most asked questions with their answers.
Q1. Where Is the Service Available?
As mentioned in the announcement, PayPal currently allows only US consumers to use their crypto holdings to pay at 29 million online merchants across the globe.
Q2. What Crypto Options Do We Have?
Though PayPal has integrated this new ‘Checkout with Crypto’ feature to the platform, a limited number of cryptocurrencies are supported.
At the moment, PayPal lets users pay with Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Bitcoin Cash (BCH).
Q3. How Does This New Feature Work?
If you have enough crypto balance in your PayPal digital currency wallet, you can easily pay at the merchant.
Depending on the availability of crypto funds required to complete your purchase, you will be presented with the option to pay in digital currency.
You can select the “Checkout with Crypto” option for your payment.
The moment you choose to pay with crypto, PayPal will automatically convert your cryptocurrency to fiat and complete the transaction.
Q4. How Much Will Be the Transaction Fee?
PayPal doesn’t charge any transaction fee to pay with cryptocurrency.
A Bold Step by PayPal
This is a bold step by PayPal Holdings, Inc. towards making cryptocurrencies mainstream across the world. The company is widely admired by the industry’s institutional investors, expressing how this move will significantly bolster crypto adoption in our daily lives.
However, PayPal is not the only credit taker here.
The news came a day after the US-based multinational financial service corporation Visa Inc. came up with the official announcement for allowing the use of cryptocurrency USD Coin to settle transactions on its payment network.
Before the companies like PayPal and Visa, the payment giant Mastercard Inc. announced on February 10, 2021, that the company is preparing for the future of crypto and payments and will begin to support select digital currencies on their network within this year.
Not just this, soon after the announcement, Mastercard, in collaboration with the Central Bank of the Bahamas and Island Pay, launched world’s first Central Bank digital currency-linked card.
With all the discussion, the fact remains that cryptocurrencies are becoming a prominent part of the payments world. While PayPal’s ‘Checkout with Crypto’ feature has been making a noise since its launch, it will be interesting to see how many users will actually use the new feature.