PayPal will support cryptocurrencies for some countries

Started by Alex, Aug 11, 2022, 01:56 AM

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Some countries PayPal wallet holders will be able to buy, sell, store and pay with cryptocurrencies in 27 million merchants that support this option from the early months of 2022. The CEO of the company noted that in this way it is preparing for the emergence of digital currencies of central banks and corporations. In the first half of next year, the opportunity will be extended to users from other countries and the audience of the Venmo service. Bitcoin, Litecoin, Ethereum and Bitcoin Cash are supported.

PayPal is going to actively develop in the cryptocurrency services market: Bloomberg has learned that the company is already in talks to buy players in that market. In particular, BitGo custodian (provides secure storage and transactions with cryptocurrencies).

PayPal has 383 million active users worldwide and generated $243 billion in transactions in the second quarter of 2021. It is the first company to receive a "conditional Bitlicense" from the New York City Financial Services Regulatory Authority , the regulator developed the license itself in the summer-autumn of 2021. The purpose of this process was announced to simplify regulatory requirements and procedures for participants in the cryptocurrency market.

In Europe, the attention of financial regulators to cryptocurrency-supporting services has already led to a limited halt in the work of ePayments. The company announced an imminent restart of the service, from which functions related to cryptocurrencies will be discard.


PayPal has some dumb conditions - you can store only the crypto that was bought in PayPal in your wallet, you can't move it to other accounts, the owner of the crypto does not have a private key in PayPal.
Why store your crypto in PayPal is not clear.

It's interesting to investigate the story:

The founder of PayPal called bitcoin a useless payment instrument / 2018

PayPal withdraws from Facebook's Libra project / 2019

PayPal announced a partnership with Paxos to launch its crypto service / 2020

PayPal now permits you to buy, sell and hold cryptocurrencies / 2020

PayPal is in discourse to buy crypto companies including BitGo / 2021


The problem is that the crypto wallet from paypal is non-custodial. That is, paypal developers can block you/restrict access to your wallet at any time, because your coins are not stored in the blockchain. It is safer to use cold wallets like ledger.


PayPal will not support Facebook's cryptocurrency.
According to Bloomberg, PayPal has officially announced that it is withdrawing from the Libra project, which it initially supported.

Recall that Facebook is planning to issue cryptocurrencies and has gathered a consortium around this project. But, according to recent reports, some companies that initially supported Facebook's initiative are ready to reconsider their decision. Among these, Bloomberg also calls Visa and MasterCard.

After the announcement of the Libra project, it was criticized by the US Federal Reserve System, as well as representatives of some European countries. The possible impact of the new cryptocurrency on the market is also being checked by US and EU state regulators.
Facebook has not commented on all these events yet.