Mike Novogratz: PayPal’s support for BTC will be crucial for adoptionBitcoin
Mike Novogratz, CEO of Galaxy Digital, discussed the importance of the launch of Bitcoin on PayPal: the news shocked Wall Street
Mike Novogratz, CEO of Galaxy Digital, discussed the importance of the launch of Bitcoin (BTC) on PayPal during a recent interview on Squawk Box, a US television channel dedicated to CNBC finance.
„In a way, I think this hit was very much felt by Wall Street,“ Novogratz commented during the interview, „PayPal has 346 million accounts, it is the 30th largest bank in the United States from a deposit point of view. All of a sudden every financial institution said ‚Wait a minute, what are we doing?'“
PayPal plans to support payments with Bitcoin, Ethereum, Litecoin, Bitcoin Cash and other crypto engine starting next year. Following the announcement of this project, the price of BTC has significantly increased: the capitalization of the cryptocurrency has even exceeded that of PayPal itself!
„Right now those on the boards of Morgan Stanley, Goldman Sachs or Bank of America are thinking: ‚How do I get into the crypto?'“, explained Novogratz. According to Galaxy Digital’s CEO, cryptocurrency will revolutionise the world of finance in the future:
„Over the next ten years, we will see a reconstruction of the financial infrastructure of this country. It is interesting to note that, for its integration of cryptocurrencies, PayPal has partnered with Paxos because specific expertise is needed to operate in the blockchain and cryptocurrency sector“.
Paxos is the entity behind PAX, a stablecoin anchored to the value of the US dollar. The company also offers other services, such as cryptocurrency custody.
Novogratz concluded by pointing out that the pandemic has significantly increased interest in digital currencies:
„As indelicate as it may sound to say, COVID has really accelerated the adoption of cryptocurrencies. It has done so in two main ways: the Bitcoin story and, perhaps more importantly, the story of the digitisation of all cash, the digitisation of all financial services that are likely to be built on Ethereum“.
This year, several major names in traditional finance have bought large amounts of Bitcoin: this could push many large institutional investors to do the same.
According to Tyler and Cameron Winklevoss, founders of the Gemini cryptocurrency exchange, when both corporations and central banks start investing in Bitcoin, the price of the cryptocurrency will reach $500,000.