PayPal's baby steps into crypto isn't dampening the hype for adoption

Bitcoin is currently hovering around the $13,000 mark, while Ether has once again safely tread past the $400 threshold in spite of the KuCoin exchange hack and the unfortunate legal events that recently unfolded around BitMEX. That being said, this latest surge can largely be attributed to the decision of online payments processor PayPal to finally enter the crypto arena.

Charles Cascarilla, CEO of Paxos, told Cointelegraph that teaming up with PayPal to provide customers all over the world with streamlined crypto access will undoubtedly have huge implications for the crypto industry at large.

"The time is now and PayPal is looking to get in early with their personalized approach to digital finance. Other financial products and services have an opportunity to step outside of a walled garden that PayPal will be stuck in by integrating with decentralized open finance usability solutions."PayPal's entry could be a game changer.

Just a day after PayPal announced its decision to foray into the world of crypto, news broke that the payments giant was exploring various avenues through which it could potentially purchase prominent and soon-to-be-rival Bitcoin custodian BitGo, which was the first United States crypto service provider to obtain a broker-dealer approval, transfer agent registration and trust company recognition.

Not only that, the deal could also potentially signal a new era for mainstream crypto legitimacy, as both PayPal and BitGo have made compliance a priority from the very beginning and have been able to secure all of the necessary licenses needed to facilitate various crypto-related activities throughout the U.S. Lastly, over the last couple of days, certain critics have pointed out that companies such as Square and Revoult are already doing more in terms of providing their users with crypto functionality than what PayPal is planning on implementing.

On the subject, Douglas Borthwick, chief marketing officer at INX Limited cryptocurrency exchange, told Cointelegraph that while PayPal's initial restrictions may be perceived as severely limiting for many crypto purists, it will allow users to interact with, and learn about, crypto as well as be involved with crypto outside of PayPal.

"Think of the Paypal environment as being a safe space with training wheels for folks to learn about crypto, before escaping to the real world, where they can experience crypto without limitations," he proposed.

The last few months have seen many prominent banking institutions dabble with crypto tech as well as various countries experimenting with CBDCs, suggesting that it was just a matter of time until a financial giant like PayPal would make its entry into the world of crypto.

"Everywhere in the world, adoption is gaining momentum. We have always believed it was a matter of 'when,' not 'if,' and PayPal jumping in is just another domino falling. This is the money of the future."

"By relying on 3rd party custody providers, PayPal is exposing its customers' digital assets to a serious cybersecurity risk. Therefore, I believe that once this initiative takes off and gains traction, PayPal will eventually shift to a self-managed services model, particularly self-custody: when it comes to a network of over 340 million users, stakes are simply too high."