http://dcebrief.com/taiwan-could-be-seeing-a-digital-currency-boom/This article makes me question whether it would be possible for PayPal to accept digital currency? What would the pros and cons be? I can immediately knowledge that one downfall would be the involvement of a third party, and fees for those transactions. The positive thing would be that by accepting Bitcoin and DNotes, PayPal would encourage consumers to accept digital currency as a real currency.
It's absolutely possible for PayPal to accept digital currency, every vendor or money services company has all the tools needed to do so. PayPal would likely charge fees, but it would be up to the user whether they want the ease of use PayPal might provide or feel comfortable managing their own digital wallet. However, if PayPal does accept digital currency, and doesn't compete by lowering fees for digital currency transactions and making it easier to use, other companies will jump at the chance to acquire those customers PayPal would lose.