Policy Update Makes Bitcoin Cheaper and More Private Than Paypal

  • Paypal are updating their privacy policy to ban accounts that are unverified
  • For US users sending funds outside the US, a fee of $4.99 will now apply - more expensive than Bitcoin. 

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One of the main issues with the adoption of cryptocurrency is the competition with existing, centralized forms of fiat services. Paypal, one of the world's leading services in that area, have announced plans that may take them out of the running.

The go-to method of eBay transacting recognize the threat of cryptocurrencies to their business, which could explain the sudden fee increase - perhaps the popular payment service is taking steps to amass funds in what may be the beginning of the end as Bitcoin and other cryptocurrencies become more widely used.

Whatever their reasoning, the changes are drastic - users in the United States will now be hit with a fee of $4.99 for sending funds internationally, plus an additional 2.9% of the transaction and an additional flat rate where the transaction is partially funded by an alternative method such as credit or debit cards.

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This is a massive increase in their fees and will make small transactions and microtransactions completely unviable, making feeless cryptocurrecies a more attractive option. However, feeless cryptos are of course already are more cost-effective method of transferring funds, but aren't used due to their low public profile.

Bitcoin, the cryptocurrency that everyone in the world knows about, is now a cheaper method of transferring funds with fees of approximately $0.21 at the time of writing, it's about to be more private as well.

PayPal Compromises On Privacy

Paypal are introducing new measures to prevent people with unverified addresses or even multiple addresses from using their service other than to withdraw to a linked bank account, effectively banning unverified users. 

"We’re changing the balance functionality for your PayPal account depending on whether we have been able to verify identifying information that you provide to us. If we have not verified your identifying information, a balance in your PayPal account can generally only be held in your PayPal account and transferred to a linked bank account or debit card."

PayPal

Today's announcement could be the beginning of a major shift in the usage of cryptocurrency as a mainstream form of peer-to-peer payment.

Attention Crypto Engineers: Jack Dorsey Wants You, Ready to Pay Salary in Bitcoin

Siamak Masnavi

On Wednesday (March 20th), Jack Dorsey, the CEO of Twitter and Square, announced that FinTech startup Square is hiring four full-time "crypto engineers" to "work full-time on open source contributions to the bitcoin/crypto ecosystem" and proceeded to explain why.

Dorsey has been a huge fan of crypto in general and Bitcoin in particular for quite a while now, and this was by no means the first time that he has publicly talked about crypto. For example, here's what he tweeted on 30 December 2016:

 On 16 May 2018, according to Bloomberg, while speaking at the Consensus 2018 conference, he had this to say about Bitcoin:

“The internet deserves a native currency; it will have a native currency. I don’t know if it’ll be Bitcoin or not, but I hope it will be.”

More recently, on February 1st, during an interview with Joe Rogan (episode #1236 of "The Joe Rogan Experience" podcast), Dorsey once again reiterated that he believed Bitcoin would eventually become the "native currency" of the Internet:

"So, back to the Internet, I believe the Internet will have a native currency. It will have a native currency, and I don't know if it's Bitcoin, and I think it will [be] given all the tests that it's been through, the principles behind it, how it was created... It was something that was born on the Internet, developed on the Internet, it was tested on the Internet. It is of the Internet... And the second thing is that we would love to see something become a global currency. It enables more access. It allows us to serve more people. It allows us to move much faster around the world."

Dorsey's most recent words about crypto, though, came on Wednesday (March 20th), when he started with a tweet that looked like a job posting:

He then explained that he had arrived at this decision as a result of a conversation last week with Square employee Mike Brock, who is leading Strategic Development for the Cash App, during which Brock had told Dorsey that the best way to help the crypto community was by improving the crypto ecosystem:

Next, Dorsey pointed out that although Square was going to be hiring these crypto enginners and paying them, none of the work that they will be driven by Square's business interests, and that whatever contributions they make will be open source and free for anyone to use:

Dorsey thinks of this initiative as giving back ("in a small way") to the open source community:

And this is how he professed his love for blockchain technology and the crypto community:

Dorsey's idea has been met by thunderous applause. Here are some of the reactions:

Binance CEO Changpeng Zhao ("CZ") also joined the conversation by pointing out that Binance is happy to pay its employees in Bitcoin (BTC) or Binance Coin (BNB):