Mike Novogratz sees the market entry of PayPal as an important step for the further adoption of the crypto currency.
Mike Novogratz, a billionaire and also the CEO of Galaxy Digital, emphasised the importance of PayPal’s imminent entry into the crypto market in an interview with the CNBC programme Squawk Box.
„I think for Wall Street this is something like the ’shot heard around the world'“, as Novogratz stated on October 23rd in reference to the announcement. The comparison that the expert makes could hardly be more significant, because the expression „Shot Heard Around The World“ refers in American parlance to the event that triggered the war of the American Revolution. Novogratz thus ascribes a downright „revolutionary“ character to the planned market entry of PayPal.
He underlines this by stating that the large payment service provider „manages 346 million accounts“ and is also „the thirtieth largest bank in the USA in terms of funds held in custody“.
As PayPal itself recently announced, the crypto-currencies Bitcoin (BTC), Ethereum, Litecoin and Bitcoin Cash for 1k daily Profit will be integrated by 2021. Following this announcement, Bitcoin has risen several percent over the last few days and, ironically, even managed to outperform the market capitalisation of the payment service provider.
„If you’re on the board of directors of Morgan Stanley or Goldman Sachs or Bank of America, you’re now wondering how you can get on board,“ Novogratz said in view of the impact of PayPal’s move on Wall Street. In this respect, he adds that companies working with crypto-currencies have made remarkable profits in 2020.
„Over the next ten years, we will see a transformation of the US financial infrastructure,“ Novogratz added. „An interesting detail is that PayPal has contracted Paxos to perform crypto integration for them, because there is expertise in the crypto and block chain industry that is now urgently needed,“ the expert added.
Paxos is a crypto company that issues the Stablecoin PAX, a crypto currency linked to the US dollar. The company also provides other crypto services such as custody.
In conclusion, Novogratz states
„As bad as it sounds, but the coronavirus has accelerated the adoption of crypto-currencies in two ways. On the one hand, by macroeconomic factors and on the other hand, by the digitalisation of money, payment transactions and the entire financial system, which will happen primarily through Ethereum“.
Several large companies have already invested in Bitcoin this year, which could be an important step for the further adoption of the market-leading crypto currency.