PayPal announced that it will allow cryptocurrencies within its platform. PayPal customers will be able to use Bitcoin, Ethereum, Bitcoin Cash, and Litecoin. To buy from the 26 million merchants of the company around the world, starting in early 2021. This has been detailed in a recent press release published by the company.
In this sense, consumers will be able to instantly convert their selected cryptocurrency balance into fiat currency, with certainty of value and without incremental fees.
No additional costs will be imposed on merchants either, as all transactions will be settled in fiat currency at their current PayPal rates.
The news was also shared by Ethereum co-founder Vitalik Buterin through a post on his social network Twitter.
PayPal enables US users to trade cryptocurrencies within weeks
For their part, the company stated that US account holders will be able to start buying, selling and holding cryptocurrencies in their PayPal wallets in the coming weeks. And in the first half of 2021, PayPal plans to expand to Venmo and other countries.
The company hopes the service will encourage the global use of virtual currencies. And, prepare your network for new digital units that central banks and businesses can develop.
Adapting to new changes
Other fintech companies, such as mobile payments provider Square Inc and stock trading app firm Robinhood Markets allow users to buy and sell cryptocurrencies. But the launch of PayPal is notable given its size.
“We are working with central banks and thinking about all forms of digital currencies and how PayPal can play a role”, He said.
“US account holders will be able to buy, sell and hold cryptocurrencies in PayPal wallets for the next few weeks”the company said.
Paypal received a conditional Bitlicense by the NYDFS
PayPal has also received a one-of-a-kind conditional Bitlicense from the New York State Department of Financial Services (NYDFS).
“NYDFS approval today follows our June 2020 announcement of a new framework for a conditional Bitlicense to encourage, promote and assist interested institutions to have a well-regulated way to access the New York virtual currency market.” .
“In a way that is timely and protects New York consumers. Through partnerships with licensed New York virtual currency firms, “said Linda A. Lacewell, superintendent of NYDFS.
“NYDFS will continue to encourage and support financial service providers to operate, grow, remain and expand in New York. And working with innovators to allow them to germinate and test their ideas, for a dynamic and forward-thinking financial services industry. Especially as we work to rebuild New York better in the midst of this pandemic.
As part of this offering, PayPal will provide account holders with educational content to help them understand the cryptocurrency ecosystem, risks and opportunities related to investing in cryptocurrencies, and information on blockchain technology.
Likewise, it was known that there are no service fees when buying or selling cryptocurrencies until December 31, 2020. And there are no fees for holding cryptocurrencies in a PayPal account.
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