The Paypal cryptocurrency payment is going to happen soon. According to cryptocurrency market news and analysis of the Minerland, PayPal, one of the largest payment companies, has officially announced that it will enter the field of digital currency services by 2021. Earlier, there were rumors that PayPal had entered this field, but now these rumors have been officially confirmed.
According to the official announcement of PayPal, from the commencement of 2021, the users of this company can use digital currencies to buy from its 26 million business units and stores that use the services of PayPal.
However, PayPal settles the accounts in the form of traditional currencies. It works like services such as BitPay. In other words, the seller receives the cost of his goods and services in fiat currencies, and PayPal will convert the cryptocurrency into the traditional currencies.
What cryptocurrencies does PayPal support?
PayPal has announced that it will initially support the Bitcoin, Ethereum, Bitcoin Cash, and LiteCoin cryptocurrencies. The company offers its payment services in the form of digital currencies in cooperation with the Paxos algorithm. PayPal has also obtained a license from the New York State Financial Services Authority. PayPal has more than 346 million active accounts.
The company processed about $ 222 billion in transactions in the second quarter of 2020 alone. The company was an early member of the Libra Association. However, due to pressure from lawmakers, it was forced to leave the association.
In early 2020, rumors were circulating that PayPal was entering the field of digital currencies. Digital currency users have always criticized PayPal for its centralized nature and unfair policies in controlling users’ assets.
However, other news shows that PayPal cryptocurrency payment does not mean the use of Bitcoin in PayPal-related payments. According to PlanB, a prominent Bitcoin activist on Twitter, PayPal will only offer Bitcoin buying, selling, and holding services.
Will PayPal cryptocurrency payment offer tax evasion?
Due to the US capital gains tax laws, the new PayPal cryptocurrency payment system is likely to appeal to many users.
Broadcasting the news that PayPal will support cryptocurrencies has strengthened the crypto industry. Of course, there are also tax concepts that are not well realized by the persons who are inexperienced in cryptocurrencies. In the early future, PayPal users can use digital currencies as a source of procurement finance for payment in the 26 million merchants of PayPal around the world.
The company has approximately 350 million active users around the world. Alex Mashinsky, CEO of the Celsius crypto loan platform, estimates that this merger could lead to the entry of “millions of new users” into the cryptography field. They are likely to face a tax problem due to the volatile nature of cryptographic funds and tax reporting provisions.
PayPal announced that it will be taking part in related tax information that will be reporting for users, but every person is responsible for his tax events.