US PayPal users will be able to buy, sell and store cryptocurrencies. It is planned to add these features for international customers in 2021.
US citizens will be able to conduct cryptocurrency transactions via PayPal in the next few weeks, and the company’s Venmo mobile payment service will add this capability in the first half of 2021. On this news, bitcoin rushed up and is preparing to overcome $ 12,500, updating the maximum since last summer.
In addition, from the beginning of next year, it is planned to open these functions to other countries so that all PayPal customers can use cryptoassets to buy goods in 26 million stores around the world. When making cryptocurrency payments through PayPal, they will be converted to fiat currency (for example, the US dollar). This means that for sellers, everything will remain the same – they will receive payment for goods in regular money.
PayPal has been licensed by the New York State Department of Financial Services (NYDFS) to provide payment services using cryptocurrencies. This license is issued to companies that do business with licensed firms, which is why PayPal has partnered with Paxos Trust Company.
PayPal CEO Dan Schulman hopes that with the addition of cryptocurrency support, PayPal will help the industry grow at scale. In addition, this step will prepare the system to work with new digital currencies, which in the near future may be issued by corporations and central banks of different countries.
“We work with central banks, so we are considering interaction with all forms of digital currencies. PayPal will contribute to the development of the cryptocurrency industry, ”said Daniel Schulman.
Last year, PayPal CFO John Rainey said the company is taking a cautious stance towards cryptocurrencies due to their high volatility and a “dim” future. However, with central bank analysts actively exploring the possibilities of launching their own digital currency, PayPal management has changed its mind to follow current trends.
A year ago, PayPal refused to participate in the Libra project. Shulman explained that it is better for the payment system to focus on its own development. If Libra’s prospects become more specific, PayPal will again be able to participate in the project, as it is supportive of the blockchain.