PayPal has recently announced that it started accepting bitcoin payments via Coinbase, BitPay and GoCoin. The news even led to a surge in bitcoin price, which rose to $450 just after the news.
In comparison with BitPay and Coinbase, which process only bitcoin transactions, GoCoin provides support for litecoin and dogecoin as well.
Yeasterday, GoCoin CEO, Steve Beauregard, told that PayPal is now accepting payments in litecoin and dogecoin.
He wrote on Twitter:
— Steve Beauregard (@BlockchainSB) September 23, 2014
Scott Ellison, PayPal’s Senior Director of Corporate Strategy, said in an announcement:
“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,” he added.
Bitcoin, litecoin and dogecoin integration into PayPal Payments Hub is a huge step for the development of digital currencies. Although the company does not confirm 100% integration with all its services, it expects to further integrate with cryptocurrencies.
The announcement is significant for other digital currencies, as it eliminates social gap between bitcoin and alternative currencies. Litecoin is now considered a second cryptocurrency in social perception after bitcoin, while dogecoin is number three.
There is a large number of other digital currencies that could be even higher in price that litecoin or dogecoin. Nevertheless, partnership with GoCoin demonstrates that PayPal chose its three main cryptocurrencies.
The selection of litecoin and dogecoin could increase competition among other currencies. Moreover, PayPal is not the only one payment system, as there are many other large payment processors, for instance, Apple Pay. Cooperation with other payment companies may be a key factor for rising competition in the digital currency industry.
Anyway, integration with bitcoin, dogecoin, and litecoin is important for the history of virtual money with many to wonder what influence the move will have on the future of cryptocurrency.