Bitcoin May Soon be Integrated with PayPal, says eBay’s CEO

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Bitcoin May Soon be Integrated with PayPal, says eBay’s CEOBitcoin may soon be integrated with payment services giant PayPal, revealed eBay’s CEO John Donahoe. This follows his earlier remarks in a Bloomberg interview in February that bitcoins and other virtual currencies don’t pose any threat to its operations.

Donahoe made the remarks during a Q&A briefing during eBay’s annual shareholder gathering on Tuesday, reported International Business Times.

“We think bitcoin will play a very important role in the future. Exactly how that plays out, and how we can best take advantage of it and enable it with PayPal, that’s something we’re actively considering. It’s on our radar screen.”

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“There is nothing holding PayPal back from pursuing digital payments today, as part of eBay. In fact PayPal is pursuing digital payments and is the leading digital payments alternative in many different environments,” Donahoe said. “You can use digital currencies in the PayPal digital wallet, that’s in fact what PayPal is doing – is building a digital wallet that can take multiple types of currency.”

Currently, eBay doesn’t accept bitcoin and other virtual currencies for transactions, with its PayPal unit grappling with tough competition from bitcoin. EBay acknowledges this, as its recent filing with the Securities and Exchanges Commission indicates-It termed bitcoin as “PayPal’s potential competitor”.

Bitcoin has an apparent upper advantage against PayPal is that it charges 2-3 percent fee for transactions, while bitcoin charges are negligible as users can bypass banks and clearing houses.

EBay created a digital currency section on its US website that will allow users to purchase and sell virtual currencies, alongside mining equipment and mining contracts. The UK section allows users to transact virtual currencies on its classified section. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.

To contact the reporter of this story; Deepak Tiwari at deepak@forexminute.com