Venmo logo displayed on a smartphone.
Pavlo Gonchar | Images SOUP | LightRocket via Getty Images
PayPal’s Venmo mobile payment app will now allow users to buy, hold and sell bitcoin and other digital tokens, potentially a significant step toward moving cryptocurrencies into the mainstream.
Starting Tuesday, Venmo will show users a new feature that allows them to invest in four different cryptocurrencies – bitcoin, ether, litecoin and bitcoin cash – with a minimum spending requirement of $ 1. They can also share their crypto shopping with friends through the Venmo social stream.
The development extends to an initial move by PayPal to allow users to buy crypto through its main platform. More recently, the company has begun allowing people to use their cryptocurrencies to pay millions of online merchants globally.
With over 70 million users, Venmo is one of the most popular digital payment services in the United States. It is especially popular among young Americans who use the app to make payments or share purchases with friends and family. It competes with the Cash’s Square app.
“No matter where you are on your cryptocurrency journey, Venmo encryption will help our community learn and explore cryptocurrencies on a trusted platform and directly in the application they know and love,” said Darrell Esch , senior vice president and CEO of Venmo.
Esch added: “Our goal is to provide our customers with an easy-to-use platform that simplifies the process of buying and selling cryptocurrencies and demystifies some of the common questions and misconceptions that consumers may have.”
Bitcoin and other digital currencies have risen in price in 2021 due to increased interest from institutional investors, while major companies such as Tesla and PayPal have also made significant moves in space. Tesla bought $ 1.5 billion worth of bitcoin earlier this year and now accepts it as payment for its cars.
Meanwhile, PayPal has stepped up its investment in crypto. Last month, the payment giant said it had agreed to buy Curv, a start-up that helps customers store their digital chips securely for nearly $ 200 million. It has also established a new blockchain-focused business unit, which Curv will join.
Venmo said its encryption feature was developed in partnership with blockchain infrastructure firm Paxos, which PayPal has used for other digital asset initiatives. PayPal received a license to engage in cryptographic activities from New York regulators last year.
While bitcoin bulls see it as a gold-like store, not everyone is convinced of the amazing return of digital currency – it previously sank to $ 3,122 in 2018, after rising to nearly $ 20,000 a year before. Skeptical economists see bitcoin as a balloon waiting to explode.