Now, the U.S. account holders will be able to buy, hold and sell Bitcoin, Litecoin, Bitcoin Cash, and Ethereum through their accounts with PayPal. The firm has specified that the users do not need to create any new account as they can access this service from their existing accounts.
PayPal Not Offering Crypto Services For Free
PayPal has also announced that it is not offering these crypto services for free. It will be available at somewhat similar charges that it used to charge for making money transfers. Even though it is quite exciting for the users that they will get access to the crypto services from their existing account only, it cannot beat the regular crypto exchanges.
The reason is that PayPal is charging extremely high fees as compared to prominent exchanges like Binance, Kraken, and a few others. According to the firm, this decision of offering crypto services is due to a huge surge in demand from U.S. users. The firm has also increased its weekly crypto purchase limit to $20,000 which was earlier at $10,000.
Huge Boost to Whole Crypto Sector
Moreover, this move by PayPal is going to give a huge boost to the crypto sector as the firm has a user base of 286 million active users. Around 60% of America is using services offered by the firm. The firm is seeing this as a huge business opportunity and that is the reason why it has entered into the crypto sector. Also, it is going to increase the crypto adoption to a very great extent, initially in the U.S. and then to the different parts of the world.