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PayPal to Launch Crypto Services in LatAm

In Latin America, PayPal intends to introduce cryptocurrency services. Bitcoin recently surpassed PayPal in the total amount moved.

PayPal to Launch Crypto Services in LatAm. PayPal’s general manager for Latin America, Federico Gómez Schumacher, spoke about the company’s plans to provide cryptocurrency services in the region. This function is now only available to consumers in the United States, but the business aims to spread it globally.

In an interview with Bloomberg (Spanish), Mr. Schumacher mentioned that the business intends to expand this service abroad. Users in Latin America may be the next to be allowed to use cryptocurrencies in PayPal since they would activate it shortly in England. 

The director said they see significant potential in allowing cryptocurrencies on PayPal Latin America because they facilitate money transactions between countries. He cautioned that it is most helpful in places with restrictions on receiving foreign currency. 

Mr. Schumacher added that it is crucial that “there is a well-defined regulation because these things need a correct regulatory framework.” He argues that this is the only way to protect all parties participating in the transaction.

PayPal in the United States currently allows the acquiring and storing of four cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH). This year it also enabled payments with these assets. So far, in the rest of the world, the platform only works to make transactions with fiat currencies, such as dollars and euros.


PayPal talks about Argentina, Mexico, Brazil, and Colombia

Federico warns that PayPal in Argentina has been operating with exchange restrictions for more than ten years. He recalls that they have had no limitations for a short time. He points out that this may be one of the reasons why Argentina did not grow as much as other countries during the year, despite the existing demand they noticed. 

The director says that the Latin American countries that grew the most in PayPal during 2021 were Mexico, Brazil, and Colombia. He points out that the first was because its population is adopting digital financial tools that other countries in the region had already started using.

According to the regional director, PayPal clients in Latin America comprise less than 5% of the company’s global total. “It’s still a small percentage today,” he says, “but it’s also the fastest-growing region.” Consequently, he claims there is a lot of interest in continuing to invest in the territory for it to grow. Poverty and a lack of access to financial services are two of the most significant concerns people face in the area, according to him.


Bitcoin big business

The Bitcoin network already moves more money than PayPal, according to Blockdata, a group that advises businesses and governments on blockchain technology. It hopes to surpass Mastercard and Visa in terms of volume in five years. In 2021, Bitcoin will process around $490 billion every quarter. 

According to Blockdata, a firm that advises businesses and governments on blockchain technology, Bitcoin transfers more money than PayPal. In five years, it expects to exceed Mastercard and Visa in terms of volume. According to a study, the Bitcoin network will trade over $489 billion every quarter in 2021. It outperforms PayPal, which had a market valuation of $302 billion. 

However, Bitcoin must still grow by 260% more to catch up with Mastercard and 540% to overtake Visa. Although it argues that it will achieve these goals soon, considering how much it has grown in such a short time. These two networks processed around $1.8 trillion and $3.2 trillion per quarter in 2021.


It is impressive how Bitcoin, as a 12-year-old decentralized network, is 27% of the way there in terms of one metric (volume processed) compared to Mastercard, a company founded in 1966.



Unlike Visa, Mastercard, and PayPal, nobody can control Bitcoin. It works by connecting individuals and businesses worldwide in a decentralized manner.

Three ways Bitcoin could overtake Visa

Blockdata warns that three possible paths would make Bitcoin overtake Visa, the most significant financial network in the market. This scenario will occur if the cryptocurrency’s price grows by 540%, the volume of money transferred in transactions, or the number of transactions.

The volume of money moved by Bitcoin, PayPal, Mastercard, and Visa.
The volume of money moved by Bitcoin, PayPal, Mastercard, and Visa. (Source: Blockdatatech)


Based on the cryptocurrency’s historical yearly worth, the network would reach this target in 2060. It does, however, caution that it will most likely be sooner. Bitcoin will overtake Visa in 2026 if the Bitcoin price continues to rise at the same rate as in 2021. 1 BTC is valued at $57,749 on the market. As a result, it believes that a solution will need to be developed on the second layer of the blockchain at some point for it to settle more transactions than it does currently.

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