How Fintechs Are Embracing Cryptocurrency
Cryptocurrencies have soared in popularity in recent years, especially due to the pandemic. However, despite their impressive growth, many financial institutions are still sceptical about cryptocurrencies. With some banks reluctant to support cryptocurrencies, who will help shape the role they play in the future of money? Fintechs, of course.
In this article, we’ll delve deeper into how fintech finance companies have started embracing the world of digital currencies.
Square Invests $50 Million in Bitcoin
Square founder and CEO, Jack Dorsey, is a massive advocate of Bitcoin and cryptocurrencies in general. Over the last few years, the company has made numerous investments into bitcoin, with the latest purchase coming back in October 2020 for $50 million. Square’s investment in bitcoin now represents approximately one percent of its total assets.
The company has also launched other initiatives to encourage its users to adopt the digital currency, such as enabling its clients to buy bitcoin on its Cash App and the launch of an ambitious project called “Square Crypto“. The latter initiative is an open-source project that aims to make bitcoin the planet’s preferred currency.
Square clearly believe that bitcoin can be a universal currency in the future, and they’re clearly on a mission to help encourage adoption of the digital currency.
Paypal Allows Its Users to Buy and Sell Cryptocurrency
PayPal is ready to drive the next wave of crypto adoption. The company recently announced that it would start allowing its 325 million users to buy, hold and sell cryptocurrency directly from their PayPal account. Along with this, they also announced that they would enable it as a funding source for purchases to its 26 million merchants worldwide.
The company has also been granted a Bitlicense by the New York State Department of Financial Services (NYDFS). This license will encourage and support financial service providers to operate, grow, remain and expand in New York.
PayPal believes the shift to digital forms of currencies is inevitable, and they are taking the necessary steps to encourage the adoption of these currencies. By working with central banks and regulators worldwide, the company will help play a role in the growth of cryptocurrencies.
Visa Partners With Cryptocurrency Firms
In recent times, Visa has started partnering with crypto exchanges like Coinbase and Paxful to help provide a bridge between digital currencies and their existing global network of 61 million merchants. In February 2020, Visa granted Coinbase principal membership. This membership enables users to spend cryptocurrency through a Visa debit card, making it easier for people to spend the digital currency in everyday situations.
Visa also has a fintech fast track programme that is helping pave the way for innovative payment solutions. Crypto companies such as ZenGo, Lightning Network and Fold have all taken advantage of the programme to help scale their offerings.
Visa understands that more and more people want to use cryptocurrency in their daily lives, and these partnerships are helping to facilitate that.
The recent moves from these fintech companies reinforce that cryptocurrencies are here to stay. More people are realising the power of cryptocurrencies, and as time goes on, we can expect even more fintechs and financial institutions to start embracing them.