2020 was the year based on mainstream crypto adoption and PayPal’s service based Bitcoin, Ethereum, LiteCoin, And others were a inflection point. The service allows its US-based customer to buy, sell and hold these cryptocurrencies.
Recently, the payment processor has also enabled a crypto checkout service and crypto trading with its subsidiary Venmo. Like this, Its customers in the US can shop at millions of affiliated merchants with PayPal. The company is gradually expanding its service and plans to expand it to its 350 million users worldwide.
Jose Fernandez da Ponte, PayPal’s vice president of global business development, spoke at CoinDesk’s consensus conference. The executive acknowledged the need for the company’s users to have more “freedom” and control over their tokens.
Fernandez da Ponte said that PayPal cares about the “utility” of cryptocurrency and said that this feature is maximized when users can “move them (their tokens) back and forth”.
The company will allow its users to transfer crypto from PayPal’s wallet to their personal wallet and other addresses. Fernandez da Ponte said the company hopes to deploy this functionality “soon”.
For this new feature, the payment processor seeks to provide technical optimization, while it conforms to existing regulations. The executive said:
We want to make it as open as possible, and we want to give our consumers options, something that will let them pay in whatever way they want to pay. They want to bring their crypto to us so that they can use it in commerce, and we want them to take the acquired crypto with us and take it to the destination of their choice.
How PayPal Can Contribute With Bitcoin And Ethereum Price Increase
It is rumored that the payments company is working on its digital assets, similar to Facebook’s Libra project. However, the executive said that PayPal’s plans to launch its own stable currency were still under development.
Digital asset control by the central bank’s digital currency (CBDC) and banking institutions seems like a logical step in the development of the currency. This will make it easier for bankers to fulfill their “two priorities”: financial stability and access to the financial system for all.
Unlike many, Fernandez considers both CBDC and fixed currency can co-exist in the multi-asset world but highlight that a lot of work has to be done in this area.
Sometimes we see the debate as a stable currency versus the CBDC, but it is a fake debate. There are no bargains. We think they will coexist. (…) On the subject of CBDC, a lot of PowerPoint has been written, but not a lot of code.
With Grayscale, PayPal was one of the main absorbing entities BTC, ETH and other cryptocurrencies. Due to its bitlicense, the company must keep the actual crypto at 1-to-1 parity for every unit purchase by its users. Thus, it creates more buying pressure in the market.
At the time of writing, BTC and ETH are trading at $ 39,000 and $ 2,800 respectively. Both the assets have been recovering from a major correction in the past one week and still have not shown any signs of acceleration in the higher timeframe.