PayPal Allows Bitcoin and Crypto Spending

Payment processing giant Paypal announced “all eligible Paypal account holders in the U.S. can now buy, hold, and sell cryptocurrency directly with Paypal.” This is bullish news for all crypto heads.

Hey Redpill Readers!

How’s the past few days been for you? For our crypto market, it’s been full of hustle in high-tech finance. Here are the biggest crypto fillers for the last week.  

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NO MORE WAITLIST FOR PAYPAL’S CRYPTO TRADING IN U.S.

Looking back… U.S. cryptocurrency users who wished to trade on PayPal had to fall in line for a slot. The company’s waitlist was a hold up for many cryptocurrency users in the U.S. looking to trade through the online platform. 

But those days are over… PayPal finally announced on Thursday the lifting of the waitlist policy to buy and sell cryptocurrency in the U.S.

All eligible users can now buy, hold, and sell Bitcoin, Ethereum, Litecoin and Bitcoin Cash using their Paypal accounts. 

Not just that… PayPal also increased its purchase limit to $20,000 per week from the initial limit of $10,000. Think it’s still too little considering the rapidly growing number of cryptocurrency users?

Well…

It’s a little milestone towards greater milestones. The immediate future holds great things for cryptocurrency trading on the platform. 

• As a purchase unit… PayPal plans to allow users to make PayPal purchases with cryptocurrencies in the next year. That makes a lot of sense since those cryptos have definite value in sale transactions. 

• Going global… PayPal is planning to make cryptocurrency payments available to its 26 million merchants around the world in the first quarter of 2021. The company is the biggest online payment network with millions of users globally. The global roll out of Paypal’s cryptocurrency payment services would work for the benefit of millions of online stores overseas (who would love to opt for digital currencies over physical currencies). 

THE TAKEAWAY

The full launch of PayPal’s crypto trading services for its users and merchants in the U.S. is another breakthrough towards the shift to digital currencies (a trend).

Cryptocurrencies have proven to be convenient and accessible payment methods for online merchants (a fact).

But here’s the problem: The potential of cryptocurrency payments to facilitate an efficient payment system remains unrealized as regulation mounts. 

Many supposed that PayPal’s license to allow its crypto merchants to trade in the platform comes from a bargain with the regulatory body to ensure that a crypto coin in PayPal, stays in PayPal. What’s holding them back from accepting that digital currencies are the new things? Simple. The value of the $ in the marketplace. 

A BITCOIN ALLY IN THE U.S. SENATE

Meet the Bitcoin Senator… Republican candidate Cynthia Lummis, a bitcoin owner and digital currency advocate, wins election to U.S. Senate from Wyoming. The former Republican congresswoman defeated Democratic candidate Merav Ben-David with 73.1% of the vote. She will be filling the seat of former Senator Mike Enzi.

Two notable things that makes the Lummis win interesting: 

• Lummis will become the first woman to represent Wyoming in the U.S. Senate.

• She’s the first bitcoin owner to be elected in the U.S. Senate (Or at least the first one to disclose so…)

The Senator-elect’s state is a hub for cryptocurrency merchants. It previously passed laws recognizing cryptocurrencies as valuable market assets and even allowed a couple of banks to transact using cryptocurrencies.

How did the incoming Senator come to own Bitcoin? Lummis disclosed that she first bought Bitcoin in 2013 on a tip from her son-in-law. Her reasons for buying: economic power of scarcity and the potential for bitcoin to address some of the manipulations in the financial system.

Political vision for the digital currency… and get this, the Senator-elect echoed her ‘hope to bring Bitcoin into the national conversation.’ 

Here’s what she said: “I do hope. I am a former state treasurer and I invested our state’s permanent funds so I was always looking for a good store of value. Bitcoin fits that bill. Our own currency inflates, Bitcoin does not. Twenty-one million Bitcoin will be mined and that is it, it is a finite supply. So, I have confidence that this is going to be an important player in stores of value for a long time to come.”

THE TAKEAWAY

Wyoming voters seem to have made a good choice… Crypto traders see Lummis as a new prominent political figure to shape up the future for digital currencies in the U.S. 

Why her win matters: Lummis’ election is a promising development for the cryptocurrency market. A big one.

In fact…

She is expected to pitch in to protect digital currencies from ‘strict federal encroachments’ and advocate for eased regulations on cryptocurrencies. This will make it easier for companies to engage in cryptocurrency business in the U.S. 

TOP SEC OFFICIAL TO STEP DOWN BY END OF YEAR

SEC confirmed in its Monday’s Press Release that its Chairman, Jay Clayton, will be leaving the agency at the end of 2020. He led the Securities and Exchange Commission for the past three and a half years. Clayton is expected to serve as the next United States Attorney for the Southern District of New York.

Clayton’s planned departure gained overwhelming support from crypto traders. He’s obviously disliked in the crypto market for all these reasons: 

• He advocated for more crypto regulations, though last month he expressed willingness to explore the idea of a tokenized exchange-traded fund  (ETF).

• Last year, he cautioned investors that Bitcoin will not be traded on a major exchange until stronger regulations are in place.

• SEC has continued to reject Bitcoin ETF under his watch.

• Under his leadership, SEC has taken many actions against ICO projects.

What to look forward to?

Well, with Clayton’s leaving, crypto traders have two things to hope for: 

• SEC will approve a bitcoin ETF

• Cryptocurrency regulations will be eased

THE TAKEAWAY

Clayton’s exit hints changes that will affect the cryptocurrency market. Crypto traders hope to get SEC approval for Bitcoin ETF next year and a more favorable regulatory stance towards cryptocurrency. And who knows… a new SEC leadership might just pave the way for a massive crypto market boom. 

MORE REDPILL CRYPTO NEWS

• Jon Cunliffe of England’s Central Bank on digital assets like crypto: Banks will have to adjust (and adjust fast)

• Salary in crypto now possible as BitPay launches its new payroll service

• An optimistic trend: Bitcoin price increase above $16k 

• Crypto traders on Chinese platforms switched to Binance following government’s crackdown 

• Research expert says privacy is crucial to the creation of new Central Bank Digital Currencies (CBDCs)

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