As of December 31st, Paypal revealed in their SEC Annual Report that the company had amassed a staggering amount of over half a billion dollars’ worth of cryptocurrency assets- primarily Bitcoin and Ether.
PayPal Holds Over $600 Million Cryptocurrency
According to the recent report, PayPal is currently in possession of a staggering $604 million worth of cryptocurrency assets such as Bitcoin ($291M), Ether ($250M), Litecoin, and Bitcoin Cash (totaling $63 million). The company’s decision to allow select market customers to buy, hold, sell, and receive crypto money has been successful. As for now, it seems that users can pay for their purchases with cryptocurrency assets proceeds from its sale. “We’ve seen tremendous interest among our customers,” said PayPal in an official filing about this move.
The “Crypto Winter” Caused Prices to Drop
When Bitcoin was worth $19,400 in the previous quarter, crypto inflows totaled $694 million; however, when FTX declared bankruptcy and consequently caused a decrease in Bitcoin price to around $16,600 by year-end, this figure plummeted. As expected, with such a large market dip impacting all of the cryptocurrency assets, an overall downward trend ensued.
PayPal Has Been An Active Player In The Cryptocurrency Market For Two Years
In November 2020, the company announced that it would start allowing users to transfer cryptocurrency assets to external wallets in June of last year. Dan Schulman, PayPal‘s CEO, revealed his enthusiasm and admiration for digital currencies after admitting to owning Bitcoin in 2019. He believes that this technology will have a major impact on people’s lives all around the world.
At the Web Summit, Schulman said confidently that constructing a modern financial system that is swifter, more affordable, and more efficient will significantly help to make people more included while reducing costs while also enhancing their economic well-being. He believes this new system would be very beneficial.
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