Mike Novogratz sees PayPal’s entry into the market as an important step for the further adoption of the cryptocurrency.
Mike Novogratz, a billionaire and also the CEO of Galaxy Digital, emphasized in an interview with the CNBC show Squawk Box the importance of PayPal’s imminent entry into the crypto market
„I think this is something like the ’shot heard around the world‘ for Wall Street“, as Novogratz stated on October 23 in relation to the announcement. The comparison made by the expert could hardly be of greater significance, because the expression “Shot Heard Around The World” refers in American parlance to the event that triggered the war of the American Revolution. Novogratz believes that PayPal’s planned entry into the market has a „revolutionary“ character.
He underscores this by stating that the large payment service provider “has 346 million accounts” and is also “the thirty-largest bank in the USA in terms of funds under custody”.
As PayPal itself recently announced, the crypto currencies Bitcoin ( BTC ), Ethereum, Litecoin and Bitcoin Cash are to be integrated by 2021 . Following this message Bitcoin’s shot over the last few days several percent up and managed, ironically, even to the market capitalization of the payment service trump .
„If you sit on the board of directors of Morgan Stanley or Goldman Sachs or Bank of America, then you wonder how you can get on board,“ said Novogratz in view of the impact of PayPal’s move on Wall Street. To that end, he adds that companies that work with cryptocurrencies have made remarkable profits in 2020.
„In the next ten years we will see a transformation of the financial infrastructure of the US,“ as Novogratz also states. „An interesting detail is that PayPal has commissioned Paxos to carry out the crypto integration for you, because there is specialist knowledge in the crypto and blockchain industry that is now urgently needed,“ the expert continues.
Paxos is a crypto company that issues the stablecoin PAX, a cryptocurrency pegged to the US dollar. The company also takes on other crypto services such as custody.
In conclusion, Novogratz says:
“As bad as that sounds, the coronavirus has sped up cryptocurrency adoption in two ways. On the one hand by the macroeconomic factors and on the other hand by the digitization of money, payment processes and the entire financial system, which will primarily happen via Ethereum. “
Several large companies have already invested in Bitcoin this year , which could be an important step in further adoption of the market-leading cryptocurrency.