PayPal has just announced a potentially interesting move: the launch of a service that will allow customers to buy, hodl, and sell in cryptocurrencies directly from their PayPal account. This will be possible for the “26 million retailers” that use PayPal throughout the world, according to the company’s statement.
The currencies that can be bought, hodl, and sold in the first phase will be Bitcoin, Ethereum, Bitcoin Cash, and Litecoin. From PayPal, they assure that the service will be available in the United States during the next weeks and that it will reach the international markets in the first quarter of 2021.
Direct Exchange Directly from PayPal
According to PayPal, users of the service will be able to use crypto-currencies as a source of financing to pay in stores, potentially in the same way that dollars, euros, and other currencies can currently be chosen if we have them in the account.
“Consumers will be able to instantly convert their balance from the selected crypto-currency to fiat currency, with a certainty of value and without incremental fees,” states PayPal in its statement, where it also assures that merchants “will have no integrations or additional charges, as all transactions will be settled with fiat currency at their current PayPal rates.” In other words, it doesn’t look like there will be any changes in terms of the use of PayPal.
The objective of PayPal is, in addition to strengthening its platform, to promote the use of crypto-currencies as an exchange tool. Cryptodivisions have always been marked by their “volatility, cost and speed of transactions”, but the company claims to have the capacity “to help facilitate the understanding, payment, and interoperability of these new exchange instruments”.
In the case of the United States, the service has been enabled through a partnership with Paxos Trust Company, a regulated provider of crypto-currency products and services. The company has expressed its willingness to work hand in hand with regulators, governments, and central banks to “explore the potential of distributed ledger technologies to improve financial services and ensure they are faster, more secure, and less costly”.
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