Yesterday, finance giant PayPal announced partnerships with Coinbase, BitPay and GoCoin to dip their feet in the water with cryptocurrency. Bitcoin price surged upward upon hearing the news, going from being worth around $400 to being worth $450 in a matter of minutes.
Now, the CEO of GoCoin confirmed that Bitcoin won’t be the only cryptocurrency benefiting from the PayPal partnership; PayPal is supporting Dogecoin and Litecoin payments as well.
In a tweet, CEO of GoCoin Steve Beauregard told followers that Bitcoin, Dogecoin and Litecoin would be available to PayPal merchants:
— Steve Beauregard (@GoBloqSteve) September 23, 2014
PayPal’s integration of these services into their PayPal Payments Hub platform for digital goods is an enormous step forward for all three digital currencies. PayPal is not announcing a 100 percent bitcoin, dogecoin and litecoin integration with their main gamut of services, but they are looking to a long-term partnership along with a way to ease into cryptocurrency altogether.
PayPal’s Senior Director of Corporate Strategy, Scott Ellison, explained in an announcement yesterday:
“PayPal has always embraced innovation, but always in ways that make payments safer and more reliable for our customers. Our approach to Bitcoin is no different. That’s why we’re proceeding gradually, supporting Bitcoin in some ways today and holding off on other ways until we see how things develop.”
“PayPal also needs to follow the laws and regulations in every market we operate. For this reason, virtual currency exchangers and administrators interested in working with PayPal in the future must secure the appropriate licenses and put anti-money laundering procedures in place.”
While these three currencies aren't completely implemented just yet, PayPal’s integration into their digital goods hub is the first step. PayPal will not be processing these transactions, but will take a referral fee because they will be allowing it through their platform; a move that cryptocurrency users may or may not experience themselves.
PayPal Closing the Social Gap
The partnership announcement is huge for users of other cryptocurrencies, specifically Litecoin and Dogecoin, because it closes the social gap between Bitcoin and the rest of the alternatives. It wouldn’t be farfetched to say that Litecoin is now, without a doubt, the current number two in social perception. It also wouldn't be crazy or silly to claim Dogecoin as number three, moving into a bit more serious area of existence.
The argument that there are plenty of other cryptocurrencies worthy of PayPal integration is valid. It’s easy to find a laundry list of other currencies that are higher in price than Dogecoin, and maybe even more driven than Litecoin. But the partnership with GoCoin shows that PayPal seems to have chosen their top three; whether it be direct or indirect.
Dogecoin and Litecoin communities should celebrate this financial victory, but other cryptocurrencies should not give up hope or become visceral. Competition is the best thing to happen to the financial realm, and while PayPal may be one of the largest payment systems, it is not the only one. Finding a way to negotiate and collaborate with other payment processors, such as the new Apple Pay and others, may be the key to pushing healthy competition off the bitcointalk forums and into the real-world-application market.
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