In the early days of Bitcoin, traditional fiat payment systems were unwitting allies—PayPal served as the on-ramp for the first bitcoin exchange, bitcoinmarket.com. But once these payment giants realized what Bitcoin was, they banned crypto transactions outright. However, the tide has turned in recent years, as centralized and decentralized payment systems are now closer than ever.
Skrill: From Skepticism to Embrace
Founded in 2001 as Moneybookers, Skrill began allowing users to buy and sell cryptocurrencies in summer 2018. CEO Lorenzo Pellegrino described crypto trading as “exciting and dynamic,” noting that Skrill’s digital wallet service fits the environment. The platform now supports BTC, ETH, LTC, BCH, XRP, and ZRX for users in over 30 countries, offering fast conversion from 40 fiat currencies via an unnamed exchange partner. A Skrill blog earlier this year stated: “If the past decade was cryptocurrencies’ proof-of-concept stage, the next decade will see them become rooted in the everyday fabric of life.”
PayPal: Quiet Moves into Blockchain
Since mid-2015, users have been able to deposit and withdraw from crypto exchanges like Coinbase via PayPal. Although PayPal withdrew from Facebook’s Libra project, its blockchain interest remains. Last year, the company filed a patent to speed up crypto payments using secondary private keys. CFO John Rainey noted, “We have teams clearly working on blockchain and cryptocurrency and want to take part in whatever form that takes in the future.”
Credit and Debit Cards: Breaking the Ice
Visa and Mastercard have wavered on crypto, with some banks banning crypto purchases. Yet third-party processors like Simplex enable credit/debit card purchases of crypto, using machine learning to prevent fraud. Binance and Bitcoin.com have partnered with Simplex for this purpose. In the debit card space, Wirex and Revolut offer crypto-linked cards, while Monolith provides a decentralized alternative—users retain custody of assets until liquidation. Monolith CEO Mel Gelderman acknowledged, “Developing the compliance and operational capabilities required to run crypto-fiat gateways has not been easy, but crypto is steadily becoming more palatable to traditional financial services players.”
The New Normal: Coexistence Benefits All
Today, buying crypto is far easier than a decade ago. Square’s Cash App now offers bitcoin trading in New York, pushing its stock to a 52-week high. Despite concerns over excessive KYC and potential service withdrawals, the crypto ecosystem is stronger than ever. The coexistence of centralized and decentralized payment systems stands to benefit everyone.