A new service from PayPal allows its customers to buy, hold and sell cryptocurrency directly from their PayPal account.
The volume of cryptocurrency transactions on PayPal breaks a new record at $ 242 million. What to encourage the global giant to invest a little more? PayPal makes a first investment with TaxBit.
All indicators are green for PayPal in the cryptocurrency area. Since the launch of its service in the United States in October, its use has seen strong growth. The firm was even accelerating its deployment schedule.
And according to Nomics data, the volume of crypto transactions is growing strongly. January 11, the day of the crash Bitcoin and altcoins, the value of assets traded on PayPal reached $ 242 million.
A volume of transactions that doubles for PayPal
The payments giant's previous record went back to January 6 at $ 129 million. More are expected to follow as the adoption of PayPal's service progresses in the US, and then internationally.
PayPal does not intend to stop there when it comes to cryptocurrency, however. The company makes its first acquisition to complete its range of services. It thus enters the capital of the startup TaxBit.
TaxBit is an editor specializing in the taxation of crypto-assets. Its solution allows users to automatically determine the amount of their tax. By investing in the startup, PayPal is therefore betting on the democratization of cryptocurrencies.
But how far? The firm does not specify the value of its investment in TaxBit. Note that the startup also counts Winklevoss Capital among its investors. Clearly, Tyler and Cameron Winklevoss, co-founders of the Gemini exchange, are also shareholders.
PayPal invests in TaxBit, expert in crypto taxation
In the United States, the taxation of cryptocurrencies is a rising topic. The US tax authorities specified its rules in this matter in 2019. The IRS also activated its services to control the assets of thousands of Americans.
They are indeed required to report their crypto transactions in their tax return. With its application, TaxBit is therefore positioning itself in a market that is set to develop. As for PayPal, it aims to advance the usefulness of cryptocurrencies and therefore their adoption.
In 2021, "we will allow cryptocurrency to be a source of funding for any transaction made with all of our 28 million traders. And that will greatly enhance the usefulness of cryptocurrencies, "insists its CEO, Dan Schulman.
And at the same time, PayPal also intends to carve out a significant share of the crypto-asset market. The multinational plans to make other acquisitions of crypto players. BitGo was on the list of potential candidates for a while. This takeover would no longer be relevant, however.