Popular bitcoin exchange and wallet service Coinbase (formerly GDAX) has announced a significant update: integration with PayPal for Bitcoin sells and credit card purchases. This move broadens the company's reach in the cryptocurrency ecosystem by providing more fiat currency on-ramps and off-ramps for its growing user base.
User Milestone: 4 Million Registrants
According to the company, Coinbase has surpassed 4 million registered users worldwide. Founded in 2012 by Brian Armstrong and Fred Ehrsam, the San Francisco-based firm has grown rapidly. It now stores approximately 10% of all Bitcoin in existence, and in 2013, it sold a record $1 million worth of Bitcoin per month.
PayPal and Credit Card Integration Details
Coinbase announced the new features via a blog post: “One of our objectives at Coinbase is to add as many funding mechanisms as possible to make exchanging digital currency easy. As a step in that direction, Coinbase now accepts PayPal (for Bitcoin sells) and credit cards (for Bitcoin buys).” The integration allows U.S. users to sell Bitcoin and have their USD funds deposited directly into their PayPal wallets. The feature is currently in beta, with broader international rollout expected in the coming weeks. PayPal has been slowly inching into the crypto space; in December 2015, it filed a patent for cryptocurrency integration into its platform.
Testing the New Feature
Users can test the new PayPal option by visiting the Payment Methods page on the Coinbase website or navigating to Settings > Payment Methods on the iOS or Android app. Coinbase invites user feedback through its Community Forum and promises to expand support for additional countries and for buying Bitcoin via PayPal in the future.
Commitment to Bitcoin and Expansion into Ethereum
Despite this integration, Coinbase reaffirms its commitment to Bitcoin. However, the company has also shown support for the Ethereum protocol. Fred Ehrsam wrote in a Medium blog post that while Bitcoin's scripting language is “too restrictive,” he has “not given up on Bitcoin, and it’s hard to argue with a network that has been so resilient.” Coinbase plans to list Ethereum on its GDAX exchange and support a variety of digital assets. The DAO incident has led some to reconsider the wisdom of complex smart contracts, but Coinbase remains focused on trust and security, stating, “Bitcoin is changing how we use and think about money.” The PayPal integration marks another step in bridging traditional finance and decentralized digital assets, offering users more flexibility in managing their cryptocurrency holdings.