- eBay showed off a digital wallet at its investor day, sparking rumors of future cryptocurrency consolidation.
- The idea of accepting cryptocurrency payments has been a topic of conversation at eBay for the last year.
- After the unveiling, eBay’s share price fell 1.64%.
Can eBay accept cryptocurrencies in the next few months? The company's latest move has generated a lot of buzz with the launch of its digital wallet.
Digital wallets and cryptocurrency payments
At eBay's 2022 Investor Day, the company unveiled its first digital wallet to investors, which stoked the fire for the impending arrival of cryptocurrency payments. The company revealed that the wallet will launch in the second quarter of 2022 with a host of features for users.
Jamie Iannone, CEO of eBay, said, "We see incredible growth potential in this market and believe this is our opportunity to win by re-imagining eBay with a technology-led approach and continuing to create value."
Footage of the wallet was included in a slide show to investors, but it's just another pointer to the e-commerce site's impending adoption of cryptocurrency. As interest in NFT soars in 2021, the company has allowed NFT to be sold on its platform. at the time, a company spokesperson said the company was "excited about the potential capabilities and how blockchain-powered collectibles can bring trust and authenticity, a key component of the digital space."
The company hopes to grow revenue by 5 percent to 6 percent in 2023 following the launch of its digital wallet. Since the announcement, the company's shares have fallen more than 1 percent after a modest gain. Users of the digital wallet can use the proceeds of their sales to seamlessly purchase their next item, the company said.
&nbsp &nbsp The Rise and Rise of Institutional Adoption
Institutional adoption of cryptocurrencies is soaring at an alarming rate. The market is still reeling from Stripe's re-entry into the space with a range of products for cryptocurrency businesses. Last year, Twitter launched a bitcoin reward service, and this year it launched an NFT verification service for users. Reports indicate that Instagram and Facebook are considering the idea of an NFT platform.
Some experts believe institutional adoption of cryptocurrencies is still in the early stages, despite heavy hedge fund participation. Chad Steinglass, head of trading at CrossTower, said some institutions are still reluctant to act because of regulatory uncertainty.
Biden's executive order on cryptocurrencies is widely seen as providing much-needed clarity for investors deciding whether to adopt. Commenting on what greater regulatory clarity would mean for the industry, Permission.io CEO Charlie Silver said, "I have no doubt that cryptocurrencies will become a true asset class on par with stocks, bonds, real estate and precious metals."