Bitcoin payment processing isn't widespread by any means, but if PayPal is considering it the way president David Marcus says they are, then BTC just might go mainstream.
In a recent Bloomberg interview, Marcus explained his stance on the wayward currency:
So I’ve been spending a lot of time looking at it, and it’s truly fascinating actually: the way that the currency’s been designed, and the way that inflation is built in to pay for miners, and all that is truly fascinating. I think that for us at PayPal, it’s just a question whether Bitcoin will make its way to PayPal’s funding instrument or not. We’re kinda thinking about it.
PayPal's role in getting Bitcoin off the ground cannot be understated. The company is notorious for draconian measures that block all kinds of cyber payments, the very reason Bitcoin has managed to succeed in different markets. But it wouldn't take much for PayPal, like Western Union or MoneyGram, to exchange BTC for local currency. The systems are in place, it's only a matter of whether PayPal is willing to work with sites that use Bitcoin regardless of prior restrictions. If so, Bitcoin's user base stands to grow immensely, while the currency could become integral to online auctions, and retail in general. On a site like eBay, for example, Bitcoin could become the core unit of monetary exchange. But if not, Bitcoin could find itself without a large user base or many sites to turn to.
We can't assume Bitcoin is all for joining ranks with PayPal, or that PayPal is keen to process it (yet). Historically, PayPal has been wary of any currency it can't defraud, and without the backing of banks, that's very hard to do with Bitcoin. And for its part, Bitcoin isn't so keen on getting tied up a money-transfer service like PayPal, which to them, is just part of America's problem.
[via Silicon Angle]