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Economy

Relationship between PayPal, Central Banks and Cryptocurrencies?

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Cryptocurrencies

Cryptocurrencies’ mainstream popularity has generally been restricted as a trading tool by its poor use owing to volatility, costs and transaction speed.

The possibility of improved technology platforms, nevertheless, allows digital currencies to be integrated. One in 10 financial institutions representing over one-fifth of the world population – expects to issue its own numerical currencies over the next three years, according to a poll carried out by the Bank for International Settlements.

“The change to virtual currencies is imminent with clear benefits in respect of monetary inclusiveness and access; the financial system’s effectiveness, speed and resilience; and the capacity to transfer public money swiftly for governments,” says Dan Schulman, President, and CEO, PayPal.

“We have the chance and the obligation to assist us to comprehend, re-deem, and inter-operable these new exchange instruments on a worldwide basis and via the aid of digital transactions, the dual side network, and stringent compliance and security checks. We are committed to working with central banks and authorities worldwide to help us.”

In order to pay for 26 million PayPal businesses worldwide, PayPal clients may utilize their bitcoin investments as a financial resource. With value certainties and no further charges, customers may immediately change their preferred cryptocurrency balance to fiat currency.

There is no additional integration or cost for PayPal dealers as all transactions are processed at the current PayPal rate using fiat currencies.

Cryptocurrency simply becomes another form of financing within the PayPal digital wallet by giving greater benefit to bitcoin holders and solving past volatility, costs, and speed issues related to cryptocurrency transactions.

The cryptocurrency and Paypal

In 2020, the digital payment corporation pushed into crypto and the system now enables people in the United States to purchase, market, hold and check out using cryptos, such as Bitcoin, Ethereum, Bitcoin Cash, and Litecoin.

Venmo, which is the wallet owned by PayPal, can also purchase and sell cryptocurrency for consumers. You may start by investing as little as $1 and do not need to register a specific cryptocurrency account.

It should be said that one of the biggest industries which adopt cryptocurrencies is the Forex market, which is the world’s largest and the most liquid market.

So, it goes without saying that traders who are involved in FX trading can use PayPal as a payment method. For these reasons, many investors are searching for Forex brokers that accept PayPal in order to deposit their accounts with digital currency. Hence, both PayPal and FX brokers are in a win-win situation and can get benefits from their customers.

Normally, you have two items to make this company legitimate when you buy bitcoin: a public and an encrypted data combination. Your wallet is the public key, and you administer the wallet with your individual and secured key.

You can access your public address with PayPal, but the firm monitors your secret key.

The company says in the “Crypto on PayPal FAQ” section of the program, “that it is not possible to move cryptography to other PayPal on or off your accounts. It is a constraint that seems strange since it should be the security you possess.

It is like depositing US$ with Bank of America. You trust the Bank of America has your bank accounts with U.S. money and they give you an IOU.

This makes it impossible for users to move their bitcoin to cold storage or to transfer money to a bank account outside of the Paypal platform.

Paypal and Central Bank

PayPal might be the equivalent of private banks to central bank digital currency (CBDC). During the company’s investor day on Thursday, CEO Dan Schulman sketched out a vision for PayPal’s digital wallets to be the vehicle through which central banks distributed CBDCs to customers of all income levels.

This is a once-in-a-decade opportunity to reshape the system’s core rails, and we have the potential to help design it. The firm also revealed additional data on the transaction activity of its clients who utilize its cryptocurrency products.

Individuals that utilize PayPal’s cryptocurrency services have a 12% boost in week-based transactions on the site. This really is due, in addition, to the fact that more than 40% of PayPal consumers in the United States who do use cryptocurrency returning to perform more than two further transactions, according to the PayPal company.

How are investors allowed to get cryptocurrencies through Paypal?

PayPal makes it simple for you to join the cryptocurrency global marketplace. You may transact in minutes and use the proceeds in your own Personal PayPal Cash or PayPal Cash Plus accounts to finance transactions and pay for goods. At the moment, Business Accounts are not accessible.

Crypto, an abbreviation for Cryptocurrency, is a decentralized cryptocurrency that you can purchase, sell, and store safely in your PayPal account.

Digital currency values will increase and fall – perhaps dramatically. Before engaging with Cryptocurrencies, it is essential that you conduct research and examine all actions (buy/sell/hold).

You may buy cryptocurrency fractions for only $1. You are allowed to determine how much you’d like to be involved.

The Crypto check-out enables clients to PayPal for the sale of their crypto-currencies and then to complete the real US dollar transactions.

For companies that don’t actually make any difference in USD, not a cryptocurrency, they are still compensated. The PayPal functionality, however, makes it easy for the consumers to make their purchases easily utilizing cryptocurrencies in the same checkout procedure.

If the client has sufficient cryptocurrencies to settle for its financial exchange then, amongst other regular payment options, such as the client’s bank account, PayPal balance, or credit and debit card, the Crypto Check-out function will emerge. Check-out on Crypto will also feature security features such as fraud, returns, and purchase protection for approved products PayPal says, as are the other payment options, the company says.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via dipo.olowookere@businesspost.ng

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Economy

NNPC Acquires Oando’s Downstream Assets to Conquer Retail Market

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NNPC OVH Oando

By Adedapo Adesanya

OVH Energy Marketing, owner and operator of the Oando-branded retail service stations, has been acquired by the Nigerian National Petroleum Company (NNPC) Limited.

The downstream assets acquired by NNPC Limited will merge with NNPC Retail Limited (NRL).

This strategic move aims to create the leading downstream energy company in Nigeria and West Africa, driven by operational efficiency, best-in-class management, and physical infrastructure while offering premium petroleum products and related services to customers in line with global standards.

Through this acquisition, NNPC Retail Limited will build on the existing success of OVH and operate model service outlets leveraging OVH’s extensive asset base and commercial capabilities.

The transaction also positions NNPC Retail Limited as the fastest growing commercial energy company in its pursuit to guarantee energy security for Nigeria’s growing population and significantly more growth opportunities for the business.

“Our acquisition of OVH brings more NNPC branded fuel stations under the NNPC Retail Limited umbrella, providing wider access for our customers, an enriched supply chain and product availability across our different locations,” said Mr Mele Kyari, the Chief Executive Officer of NNPC Ltd.

“Our goal as NNPC Limited is to become a catalyst for massive improvement within the downstream oil and gas industry therefore, access to the extensive asset base of OVH is our audacious step towards attaining this goal.

“We are positive that this is the much-needed transformation required by the sector as it provides us with an integrated platform to attract the right investments, which enables the growth of our operations,” he added.

“This acquisition by NNPC comes at a critical time in the Nigerian energy sector given the overhaul of the petroleum laws (with the recent enactment of the PIA), the continuing increased demand for petroleum products and particularly the deliberate efforts to increase and improve the supply and consumption of natural gas in support of our energy transition goals,” says Mr Huub Stokman, CEO OVH.

“We have always focused on a value-driven approach, prioritizing the quality of products and services offered to our customers at both retail and commercial levels.

“This acquisition enables the combined strengths of both entities to innovate our offerings and infrastructure, necessary to transform the downstream energy sector in Nigeria and West Africa. It is an exciting time for us all, as we continue to focus on technological enhancement, our customers, staff, and other stakeholders,” he added.

OVH Energy Oando branded retail service stations will be rebranded into the NNPC brand, and full integration is expected by the end of 2023.

The leadership of the merged entity share a common purpose and is focused on value creation with the strengths of OVH’s operational efficiency and NNPC’s brand.

In addition, and to support the combined NNPC Retail Limited operations, NNPC Limited has acquired Apapa SPM Limited (an affiliate of OVH Energy) that owns and manages West Africa’s first privately owned midstream jetty, known as the Lagos Midstream Jetty.

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Economy

Market Gains 0.12% on Interests in Guinness, FBNH, Cadbury Nigeria

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guinness nigeria

By Dipo Olowookere

Interests in the shares of Guinness Nigeria, Cadbury Nigeria, FBN Holdings and others lifted the Nigerian Exchange (NGX) Limited by 0.12 per cent on Friday.

From analysis of the trading data, the consumer goods, banking and energy sectors saw significant bargain hunting activities during the session, leaving their respective index closing higher by 0.57 per cent, 0.41 per cent, and 0.03 per cent.

However, the insurance counter witnessed a pocket of profit-taking as its index went down by 0.09 per cent, while the industrial goods sector closed the way it opened for the session.

When the bourse finish for the day, the All-Share Index (ASI) was up by 59.33 points to settle at 49,024.16 points compared with the previous day’s 48,964.83 points as the market capitalisation finished N32 billion higher to N26.452 trillion from N26.420 trillion.

The market breadth was positive yesterday, with 17 price gainers and 10 price losers, indicating a strong investor sentiment.

RT Briscoe appreciated by 9.68 per cent to trade at 34 Kobo, May and Baker rose by 9.63 per cent to N4.10, Guinness Nigeria improved by 9.29 per cent to N82.90, Jaiz Bank climbed higher by 8.43 per cent to 90 Kobo, and UPDC expanded by 8.42 per cent to N1.03.

At the other side of the table, Ikeja Hotel was on top after its value crashed by 9.68 per cent to N1.12, Sovereign Trust Insurance fell by 6.90 per cent to 27 Kobo, NAHCO dropped 3.51 per cent to sell for N5.50, UPDC REIT went down by 3.13 per cent to N3.10, and Neimeth depreciated by 2.10 per cent to N1.40.

Business Post reports that the level of activity improved on the last trading session of the week as the trading volume, value and number of deals increased by 61.58 per cent, 65.96 per cent and 3.67 per cent, respectively.

This was because investors transacted 356.7 million shares worth N3.7 billion in 3,219 deals as against the 220.8 million shares worth N2.3 billion transacted on Thursday in 3,105 deals.

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Economy

Nigeria at 62: Buhari Says Borrowing Necessary for Growth

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Buhari stimulating economic growth

By Adedapo Adesanya

In what would be his last Independence Day address, President Muhammadu Buhari, on Saturday, defended his government’s borrowing policy, describing it as a necessary step to provide the infrastructure that would expand opportunities for the growth of the Nigerian economy.

Mr Buhari stated in the address to the country on October 1, 2022, that, “The federal government is already expanding port operations to ensure that they provide opportunities for the growth of the Nigerian economy.

“We have also continued to accelerate our infrastructure development through serviceable and transparent borrowing, improved capital inflow & increased revenue generation by expanding the tax bases and prudent management of investment proceeds in the Sovereign Wealth Fund.

“To further open up our communities to economic activities, we have continued to boost our railway infrastructure with the completion of a good number of critical railways and at the same time rehabilitating as well as upgrading obsolete equipment.”

The President also noted that no village in the country was left behind in the regime’s Social Investment Programmes such as N-Power, trader-moni, market moni, etc.

“I am pleased to inform my fellow citizens that besides our emphasis on infrastructural development with its attendant opportunities for job creation, employment generation and subsequent poverty reduction, our focused intervention directly to Nigerians through the National Social Investment Programme is also yielding benefits.

“There is hardly any ward, village or local government in Nigeria today that has not benefited from one of the following: N-Power, trader-moni, market moni, subsidized loans, business grants or Conditional Cash Transfers.

“All the programmes mentioned above along with various interventions by the National Social Investment Programme, direct support to victims of flooding and other forms of disasters have provided succour to the affected Nigerians,” Mr Buhari said.

He also promised Nigerians that he would ensure free and fair elections come 2023 and called for more youth and women participation in the electoral cycle.

He said, “Having witnessed at close quarters the pains, anguish and disappointment of being a victim of an unfair electoral process, the pursuit of an electoral system and processes that guarantee the election of leaders by citizens remains the guiding light as I prepare to wind down our administration.

“You would all agree that the recent elections in the past two years in some states, notably Anambra, Ekiti and Osun and a few federal constituencies, have shown a high degree of credibility, transparency and freedom of choice with the people’s votes actually counting. This I promise would be improved upon as we move towards the 2023 general elections,” he said.

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