The Venmo logo is displayed on a smartphone.
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PayPal’s mobile payment app Venmo now lets users buy, hold and sell bitcoin and other digital tokens, which is potentially an important step in 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 purchases with friends via Venmo’s social stream.
The development expands with a first step by PayPal to allow users to buy crypto via its main platform. Recently, the business started people using their crypto-assets to pay at millions of its online merchants worldwide.
With over 70 million users, Venmo is one of the most popular digital payment services in the US. It is especially popular among younger Americans who use the app to make payments or split purchases with friends and family. It competes with Square’s Cash App.
“No matter where you are on your cryptocurrency journey, crypto on Venmo will help our community learn and explore cryptocurrencies on a trusted platform and directly in the app they know and hold,” said Darrell Esch , a senior vice president and general manager 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 consumers may have.”
Bitcoin and other digital currencies rose in price increases in 2021 due to the increasing interest of institutional investors, while large companies such as Tesla and PayPal also made significant movements in space. Tesla bought $ 1.5 billion worth of bitcoin earlier this year and now accepts it as payment for its cars.
PayPal has meanwhile increased its investments in crypto. Last month, the payment giant said it had agreed to buy Curv, a company that helps customers store their digital tokens securely, for nearly $ 200 million. It has also established a new business unit focusing on blockchain, to which Curv will join.
Venmo said its crypto feature was developed in partnership with blockchain infrastructure firm Paxos, which also used PayPal for its other digital asset initiatives. PayPal received a license last year to conduct crypto activities with regulators in New York.
While bitcoin bulls see it as a value store similar to gold, not everyone is convinced of the amazing return of the digital currency – it sank to $ 3,122 earlier in 2018 after falling to almost $ 20 a year earlier. 000 has risen. Skeptical economists view bitcoin as a bubble waiting to burst.