The arrival of PayPal in crypto-currencies is great news for its adoption, says Novogratz.
Galaxy Digital CEO and billionaire Mike Novogratz was recently in the Squawk Box for an interview, detailing the importance of PayPal’s upcoming Bitcoin-related (BTC) launch in 2021.
„I think that’s, in a way, the shot heard around the world on Wall Street,“ Novogratz said in an interview on October 23 about the recent news from PayPal. „PayPal has 346 million accounts,“ he said, adding, „They are the thirtieth largest bank in the U.S. in deposits, and suddenly all the financial institutions are saying, ‚Wait a minute, what am I doing?“
PayPal plans to add Bitcoin, Ethereum, Litecoin and Bitcoin Cash to its network sometime in 2021. Following the announcement of these plans, Bitcoin Era went up in price and eventually surpassed PayPal’s market capitalization.
„If you’re in the boardroom at Morgan Stanley or Goldman Sachs or Bank of America, you’re thinking, ‚How do I get engaged,‘“ Novogratz said of the crypt coins. Prior to his interview, the CEO said he saw a peak in the share performance of companies involved in crypto, as well as the price of Ethereum. He noted that these assets have recorded remarkable price gains in 2020.
„We will see, over the next 10 years, a rebuilding of the financial infrastructure of this country,“ Novogratz said. „It was interesting that PayPal hired Paxos to do its integration with crypto because there is a domain experience in this space of crypto-currencies, in this space of blockchain, that is necessary„. Paxos serves as the entity behind PAX, one of the many stable currencies linked to the US dollar in the crypto industry. The institution also promotes other functions, such as custody.
„It was the COVID virus that really accelerated, as horrible as it may seem, the adoption of cryptomonies in two ways: the macro story with Bitcoin and the perhaps more important story of the digitization of all the cash, the digitization of the financial services system, that will be built primarily on Ethereum.“
Multiple traditional financial players have collected large amounts of Bitcoin this year, apparently marking the beginning of an era of widespread adoption of Bitcoin.