- The idea of accepting cryptocurrency payment has been a topic around eBay over the last year.
- eBay’s stock declined by 1.64% following the unveiling.
Could eBay accept cryptocurrencies in the coming months? The company’s latest move has gotten a lot of tongues wagging with the unveiling of a digital wallet.
Digital Wallets And Crypto Payments
At eBay’s 2022 Investor Day, the company unveiled its first digital wallet to investors that stoked the flames that crypto payments were on the horizon. The company disclosed that the wallet will be launched in Q2 of 2022 and is packed with a ton of features for the users.
“We see incredibly compelling growth potential in this market and believe it is our opportunity to win by sharpening our focus and continuing to create value through a tech-led reimagination of eBay,” said Jamie Iannone, eBay’s CEO.
The snippet of the wallet was included in a slide shown to investors but this is just another pointer that the eCommerce site was on the brink of adopting cryptocurrencies. The company already allows the sale of NFTs on its platform, driven by the skyrocketing interest in NFTs in 2021. At the time, a company spokesperson stated that the company was “excited about the underlying capabilities and how blockchain-driven collectibles bring trust and authenticity, key components to the digital space.”
The company hopes that revenue will increase by 5% – 6% in 2023 after the launch of the digital wallet. Since the announcement, the company stock has fallen by over 1% after enjoying a small rally. The company stated that users of the digital wallet can utilize the gains from their sales to buy their next item seamlessly.
The Rise And Rise Of Institutional Adoption
Institutional adoption for cryptocurrency is soaring at a breakneck pace. The markets are still reeling from Stripe’s huge reentry into the space with a range of products for crypto businesses. Last year, Twitter launched a Bitcoin Tipping Service, and this year, it launched an NFT verification service for users. Reports suggest that Instagram and Facebook were mulling over the idea of an NFT platform.
Some experts believe that institutional adoption of cryptocurrencies is still at the earliest stages despite the avalanche of hedge funds getting involved. There are still institutions that are holding back from taking the plunge because of the lack of regulatory clarity, according to Chad Steinglass, Head of Trading at CrossTower
Biden’s executive order on cryptocurrencies is widely thought to offer much-needed clarity for investors to decide whether to adopt or not to adopt. “I have no doubt that crypto will become a true asset class on par with equities, bonds, real estate, and precious metals,” said Charlie Silver, CEO of Permission.io on what clearer regulations will mean for the industry.