Since its appearance, the cryptocurrencies they have enjoyed great popularity in the internet community, mainly due to their decentralized structure. Despite this popularity, digital currencies have not managed to position themselves as a recurring payment method in the world economy, due to various factors. Among them we can count the constant fluctuation on the value of each one, and the speculation that this entails behind it.
However, in the last two years its acceptance has been increasing progressively along with the impulse of digital media. So much so that large payment platforms have gone a step further by turning them into fixed methods for their transactions.
PayPal adds a new payment method to its platform: cryptocurrencies
Previously PayPal had already opened its doors to the world of cryptocurrencies, allowing its users to buy and sell these digital assets from its platform. Even so, the implementation of these as a payment method is an innovation within the digital wallet market.
At the moment the possibility of making payments with cryptocurrencies will be enabled only for the United Statesand with the following cryptocurrencies: Litecoin, Bitcoin, Ethereum and BitcoinCash. With this update, PayPal opens the doors to a future normalization of transactions through these digital currencies, exposing its viability as a payment method for its more than 377,000,000 active accounts.
Visa bets on stablecoins
Visa is a financial multinational that has one of the largest payment platforms in the world, supported by its network of payment cards. Like PayPal, the multinational company has decided to bet on cryptocurrencies, more specifically on the USD Coin (USDC), a stablecoin. This move by Visa goes hand-in-hand with the recent partnership with digital asset platform, Anchorage.
Stablecoins are cryptocurrencies whose value is anchored to a fixed asset., such as gold, oil, or a FIAT currency such as the euro. In this way, this type of cryptocurrency offers the benefits of a cryptocurrency by being free from the restrictions of banking entities, together with the price stability of the asset it represents.
That said, the USDC, as its name indicates, is anchored to the value of the dollar which generates great stability for this cryptocurrency. On the other hand, from a more technical point of view, its structure is based on the technology of ethereumone of the most reliable cryptocurrencies today.
This new addition to Visa is being tested by Crypto.com, hand in hand with its own branded cards. With this, Crypto.com users who have USDC availability will be able to complete their transactions with this cryptocurrency, without the need to first convert them to dollars.
A new era for cryptocurrencies and the blockchain
As we mentioned, currently the digital asset market has seen an increase in its acceptance thanks to several factors. One of which could lead to the visualization that has been given to cryptocurrencies lately, especially bitcoin.
At the beginning of March bitcoin reached a new historical price exceeding 60,000 dollars, approximately 51,126 euros for each bitcoin. In February, the technology company Tesla had announced an investment of 1,500 million dollars, about 1,278 million euros, in bitcoins. Investment that starts from the support that its CEO, , has always maintained towards this digital market.
Similarly, in recent days Musk announced through his Twitter account that it would already be possible to acquire Tesla cars through bitcoins, thus generating a physical market for these assets.
You can now buy a Tesla with Bitcoin
— Elon Musk (@elonmusk)
Blockchain, the technology of the moment
Just as bitcoin saw exponential growth, that supports cryptocurrencies has also seen a huge boom lately. Let us remember that this technology offers greater security on transaction data and digital assets, since they are stored in a globalized network with recurring updates. For this reason, its use can be expanded to different areas, giving priority to the protection of data in a more secure and decentralized way.
Another use that has been given to this technology lately, outside of cryptocurrencies, has been in the hands of or non-fungible tokens. NFTs are tokens, as the name suggests, that represent a certificate of ownership over digital assets. This offers a new horizon for collectors and also provides a new way for creators to monetize their digital content.
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