PayPal Holdings Inc (NASDAQ:PYPL) has reportedly stated that they won’t be purchasing cryptocurrencies like Bitcoin (BTC), the payments giant’s CFO John Rainey told CNBC on Thursday (February 11, 2021).
Rainey clarified that PayPal would not be investing corporate cash (probably) “in sort of financial assets like that, but we want to capitalize on this growth opportunity that’s in front of us.”
PayPal had announced in October 2020 that it would allow US clients to hold Bitcoin and other digital currencies in its digital wallet, and also shop using virtual currencies at merchants supported by its global network.
Recently, Mastercard stated that it was planning to support some cryptocurrencies on its network, beginning this year. BlackRock Inc, the world’s largest asset manager, and payments giant Square Inc are now also involved in the crypto space.
Rainey noted that PayPal is focused on investing its funds in services the firm is already offering, like Buy Now, Pay Later or BNPL services.
BNPL services have become increasingly popular across major retail sites, especially during the COVID-19 outbreak, as many more consumers now prefer to engage in online shopping instead of visiting physical store locations (to prevent the further spread of the virus).
PayPal’s statements regarding its future plans for crypto and other Fintech services have come as Bitcoin (BTC) has surged to (briefly) above $48,000. The leading digital currency has surged dramatically after Elon Musk’s electric vehicle firm Tesla Inc confirmed that it had acquired $1.5 billion worth of BTC and was planning to accept it as a form of payment for its cars.
Shortly after Tesla’s major announcement, several firms had issued statements which offered their views on the development.
Uber Technologies Inc CEO Dara Khosrowshahi stated that the ride-hailing firm had discussed but then “quickly dismissed” the idea of making investments in Bitcoin. But Khosrowshahi noted that Uber might consider accepting Bitcoin as a form of payment.
Meanwhile, Twitter Inc stated that it still hasn’t decided whether it should be holding Bitcoin. General Motors Co confirmed that it would be evaluating whether or not BTC may be accepted as payment for its automobiles.
Mastercard revealed on Wednesday that it is set to bring cryptocurrency to its network. The financial giant reported that this is a big change that will require a lot of work and it will be very thoughtful about which assets we support based on its principles for digital currencies, which focus on consumer protections and compliance.
Mastercard’s management stated:
“Our philosophy on cryptocurrencies is straightforward: It’s about choice. Mastercard isn’t here to recommend you start using cryptocurrencies. But we are here to enable customers, merchants and businesses to move digital value – traditional or crypto – however they want.It should be your choice, it’s your money. Doing this work will create a lot more possibilities for shoppers and merchants, allowing them to transact in an entirely new form of payment. This change may open merchants up to new customers who are already flocking to digital assets, and help sellers build loyalty with existing customers who want this additional option. And customers will be able to save, store and send money in new ways.”
BNY Mellon (NYSE:BK), a bank with $2.2 trillion in assets under management, has announced the creation of a new Digital Assets unit that seeks to accelerate the development of solutions to help clients address growing and evolving needs related to the growth of digital assets, including cryptocurrencies.
BNY Mellon is one of the oldest banks in the US with a legacy that dates back to the late 1700s. The bank is simply recognizing the growing demand for digital assets as customers and investors look to leverage the new technology or invest in cryptocurrencies like Bitcoin.
Blue Ridge Bank announced on Wednesday it is providing access to Bitcoin at its branch locations. Cardholders can purchase and redeem Bitcoin at nearly 20 Blue Ridge Bank ATM locations, consisting of both branch and off-site ATMs.