Not very long ago, PayPal revealed plans of making it possible for some of its merchants to accept Bitcoin payments. Bitcoin integration with PayPal — should it see the light of day — looks set to redefine finance and how payments are made across the world.
PayPal is no doubt a force to reckon with when global payments are concerned. The American company has spread its tentacles to numerous countries around the world, working with thousands of top companies and brands. It is, therefore, something significant for Bitcoin acceptance if integration of the crypto currency with the leading payment processor comes to fruition.
One of the qualities of Bitcoin that many people love is its “democratic” nature — not being subject to the control of a central monetary authority. The interesting thing is that PayPal had somewhat similar aim at its inception almost 15 years ago. The top payment processor aimed at making it possible to make and receive payments seamlessly and at very low costs. The attainment of that goal by PayPal, however, has been somewhat inhibited by its reliance on existing payment structure.
Boosting Bitcoin Use
The integration of Bitcoin into PayPal will, in no small measure, boost the acceptance of crypto currency. This is because merchants will thus be enabled to accept the digital currency without having to set up a separate system for that purpose. And with more people holding Bitcoin, the integration will create more places for them to spend the digital currency as well as send money around the world at very cheap rates.
While it is expected that Bitcoin integration will relatively speed up the adoption of crypto currency, there are some issues that may still deter a good number of people. One of this is weak consumer protection. Merchants’ failure to keep to delivery agreements, poor quality products and fraudulent deals are some of the issues that make people hold back from Bitcoins.
However, the biggest challenge facing the adoption of digital currency borders on security. It is estimated that about 10 percent of total Bitcoins in the ecosystem has either been stolen or lost. Now such a statistic is in no way helpful to confidence in digital currency. Dubious folks are also interested in Bitcoins, just like every other person, and will do anything to get them.
Resolving Security Issues
Luckily, security challenges standing in the way of digital currency adoption are surmountable. While crypto currency security may be difficult, it is not exactly impossible. There are security measures that can be implemented for Bitcoin wallets. The issue is that some companies are too lax to build them into products. Multi-signature key management, fraud monitoring and MFA are some of the security solutions that are available and which can help improve the acceptance of digital currency.
It is not known for now how the announced Bitcoin integration will pan out. However, security is very important to ensure more people gain enough confidence to adopt digital currency.