On October 22, trading platform Bitfinex reported Bitcoin breaking the $13,000 threshold, marking its highest level since July 2019.
PayPal announced on October 21 that it would launch a new service enabling users to buy, hold, and sell cryptocurrencies. The company also revealed plans to enhance cryptocurrency utility by allowing it as a funding source for purchases across its network of 26 million global merchants.
Dan Schulman, PayPal’s President and CEO, stated:
"The shift to digital currencies is inevitable. It offers clear advantages in financial inclusion, government disbursement efficiency, and payment system resilience."
PayPal, a California-based online payment service provider, boasts over 200 million users and is a component of the Nasdaq-100 index.
Following this announcement, Bitcoin’s price surged by 10% within 24 hours, surpassing $13,000—a peak not seen since mid-2019. Notably, Bitcoin had dipped below **$5,000** in March 2020 amid market volatility.
Global Central Banks and Digital Currencies
A Bank for International Settlements (BIS) survey found that 1 in 10 central banks (representing 20% of the global population) expects to issue a central bank digital currency (CBDC) within three years.
In China, the digital yuan (e-CNY) pilot launched on October 11 in Shenzhen. The local government distributed 50,000 digital red envelopes, each containing 200 e-CNY, to randomly selected residents for use at designated merchants.
FAQs
Q: How does PayPal’s cryptocurrency service work?
A: Users can buy, hold, and sell cryptocurrencies like Bitcoin directly within their PayPal accounts, with plans to enable crypto payments at merchants soon.
Q: Why did Bitcoin’s price surge after PayPal’s announcement?
A: PayPal’s entry signals mainstream adoption, increasing demand and investor confidence in cryptocurrencies.
Q: What is the significance of central bank digital currencies (CBDCs)?
A: CBDCs aim to modernize payment systems, improve financial inclusion, and streamline cross-border transactions.
👉 Discover how to invest in Bitcoin securely
👉 Learn more about digital currency trends