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Top line
PayPal has finally decided to embrace cryptocurrencies and will soon be offering its US customers the ability to buy, hold, sell and use various virtual currencies, having obtained a New York license that allows it to do so – a move long overdue by enthusiasts of cryptocurrencies, which see the approval of PayPal and its vast network of digital wallets as a means to catapult cryptocurrencies into mainstream use.
PayPal is launching a cryptocurrency service for its US customers
SOPA / LightRocket images via Getty Images
Main aspects
PayPal will support four different cryptocurrencies – bitcoin, ethereum, litecoin and bitcoin cash – along with the fintech startup Paxos.
In the coming weeks, US users will be able to buy, hold and sell cryptocurrencies in their digital wallets, before being able to use them as a source of funding at the company’s 26 million merchants since early 2021.
The company said it will expand crypto support to its Venmo social payments app in early 2021, as well as to other countries outside the United States.
The New York State Department of Financial Services – which regulates financial services and products – has granted PayPal a “conditional Bitlicense” to offer the service, the first time it has done so, which will allow PayPal to partner with an operator. established cryptographic, Paxos, to provide services until it gets a full license.
Key background
PayPal’s approval for cryptocurrencies is huge. Not only does it represent a huge market – PayPal, and its Venmo app, is one of the largest digital wallet networks in the world – it offers a way to potentially tame the volatility, speed, and cost issues that have hindered cryptocurrency core ambitions. By adding cryptocurrencies to its digital wallet, they become just another source of funds.
Crucial quote
PayPal CEO Dan Schulman said the move to digital currencies “is inevitable” in a press release. He said the company is keen to partner with banks and regulators around the world to help shape “the role digital currencies will play in the future of global finance and trade.”
Further reading
PayPal finally embraces cryptocurrencies with the New York license (Financial Times)
PayPal to allow the purchase, sale and shopping of cryptocurrency on its network (Telegraph)
PayPal Surprise Announcement Pushes Bitcoin Towards $ 13k (Forbes)
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