PayPal has recently announced to accept cryptocurrencies for online payments. The payments giant is taking this step for the first time, and now the users will also be able to buy, sell, and store cryptocurrencies with it. It is revealed that the platform will layout this service for cryptocurrencies by the end of this year.
As compared to other such companies, PayPal will become the first major firm to adopt different virtual currencies. It will be extending its support for Bitcoin, Litecoin, Bitcoin Cash, and Ethereum.
PayPal Looking Forward to Work With Central Banks and Regulators
The step has been taken by the firm by keeping in mind the huge surge in digital payments and people looking for alternatives that could offer both efficiency and speed. Herewith this step, the company is also hoping to increase crypto adoption among people outside the industry. The announcement also revealed that PayPal is looking to expand this service to Venmo as well.
Dan Schulman, CEO at PayPal has said:
“Our global reach, digital payments expertise, two-sided network, and rigorous security and compliance controls provide us with the opportunity, and the responsibility, to help facilitate the understanding, redemption, and interoperability of these new instruments of exchange.”
He also mentioned that the firm is extremely excited to work with global regulators and central banks across the world. The firm has revealed that all the transactions will be settled in traditional fiat currency only. This means that the merchants are not required to convert digital currency into dollars.
Crypto Cannot be Transferred to Other Accounts
It is specified by the firm that although users will be able to sell, buy, and store cryptocurrencies on its digital wallet, they cannot transfer it to any other account. This might be counted as a negative point as other crypto exchanges allow the transfer of cryptocurrencies to other accounts as well. PayPal has also recently received the first-of-its-kind conditional BitLicense, which is granted by the New York State Department of Financial Services (NYDFS). Receiving this license is another major move by the firm in the crypto space.