PayPal has announced that it will now support the exchange of cryptocurrencies between users, transforming the platform into a complete crypto wallet.
Previously, PayPal users could only buy, sell, hold, and pay with popular cryptocurrencies, and only in certain countries like the US and UK.
However, the latest update introduces the ability for US users to send and receive cryptocurrencies, transfer coins to PayPal from third-party exchanges, and move coins to external wallets. .
PayPal gets into crypto
PayPal first announced its foray into the crypto world in October 2020, when it gave US customers the ability to store certain crypto tokens (including Bitcoin, Ether, and Litecoin) in their accounts.
At the time, the company cited opportunities related to financial inclusion as the main reason for the initiative, as well as the ambition to increase the utility of cryptocurrencies in the context of electronic commerce.
In August 2021, the payment giant expanded its crypto offering to UK users, following positive feedback from users in its home country.
The latest update may mark a turning point for PayPal, which had previously tried to isolate its crypto services by limiting the ability to transfer assets freely.
"Allowing PayPal customers the flexibility to move their crypto assets into, out of, and within our PayPal platform reflects the continued evolution of our class-leading platform and enables customers to engage with the broader crypto ecosystem," José wrote. Fernandez da Ponte. . , who leads the crypto initiative at PayPal.
“We are excited to connect PayPal customers with other wallets, exchanges, and apps, and will continue to roll out additional crypto features, products, and services in the coming months.”
Fernández da Ponte also announced that PayPal had obtained a full Bitlicense from the New York Department of Financial Services (NYDFS), which he described as a demonstration of the company's commitment to all regulatory guidelines that apply to its transactions in the crypto space.
The decision to push further into the industry comes amid a sharp drop in the price of all major cryptocurrencies, caused in part by the decoupling of several major stablecoins from their peg, which wiped out billions of dollars. in value. Based on a historic maximum of €68/unit in November 990, Bitcoin is currently quoting at a price of €2021 per month.