There has always been a grey area with crypto currency causing both users and especially companies to refrain from accepting the form of virtual currency as a payment. It can’t be help that a digital form of currency leaves a bit of uncertainty in our mind, but over the course of the last few years, many merchants have slowly adapted.
eBay (NASDAQ: EBAY) CEO John Donahoe has expressed interest in crypto-currency in the past and stated that crypto currency would play an important role in the future of online payment. On Tuesday, PayPal has announced their partnership with digital currency processing platforms such as Bitpay, GoCoin, and Coinbase to accept Bitcoin as a form of payment to its merchants.
How will it work?
Currently, PayPal would only allow Bitcoins to purchase digital goods such as a digital games and songs. It only makes sense to limit the options for the moment, as PayPal simply wants to test the water before making a full commitment. PayPal Users would not be able to store Bitcoin in their PayPal account or wallet. PayPal will be playing the role of the intermediary; Bitpay, GoCoin or Coinbase will process all the transactions. PayPal would be receiving a fee from the Bitcoin processors for every referral. The company has not yet announced the merchants that will be accepting the currency.
Big Step for Digital Currency
While this may seem like a baby step for Bitcoin with PayPal starting to adapt to the crypto-currency, many other companies may follow suit. Currently, companies such as Overstock.com (NASDAQ: OSTK), NewEgg, Dell and many others are currently accepting Bitcoins. Bitcoins and many other crypto-currency are gaining positive exposure, leaving the stigma of the currency used in black markets such as SilkRoad behind. Crypto-currency may possibly be part of our future with more and more companies warming up to the idea.