PayPal has finally decided to “embrace” cryptocurrencies and will soon give UK customers the ability to buy, hold, sell and use various digital currencies. Cryptocurrency fans, who see this move by PayPal as a “vote of confidence”, believe that the extensive “digital wallet” network of the electronic payment company will be the means to launch the use of crypto currencies.
PayPal will support four different crypto currencies – Bitcoin, Ethereum, Litecoin and Bitcoin cash.
PayPal also announced that from the beginning of 2021 it will provide support for cryptocurrencies in the implementation of payments for Venmo mobile phones, as well as that it intends to expand this service to other countries outside the US.
The New York State Department of Financial Services – the regulator of financial services and products – has granted PayPal a “conditional cryptocurrency service license,” doing so for the first time, allowing the company to work with an established crypto currency manager, Paxos, to provide these services until it is fully licensed.
PayPal’s entry into the cryptocurrency market is crucial in any case. Not only because the company represents a huge market – PayPal and the Venmo app make up one of the largest digital wallet networks in the world – but also because it can potentially help eliminate the volatility, speed and cost problems that have hampered their ambition. Crypto currencies to become a key trading tool. This is because, by entering cryptocurrencies in a single-use digital wallet, they are automatically converted into another source of money.
PayPal CEO Daniel Schulman, made an official announcement from the company regarding the acquisition of the license, and said that the transition to digital currencies “is inevitable”. He expressed the company’s intention to work with banking institutions and regulators around the world to help shape “the role that digital currencies will play in the global financial system and trade in the future.” PayPal’s services will also be coming to United Kingdom as more countries outside the US want the opportunity to use cryptos for digital payments.
The company’s plans seem to be very ambitious, as PayPal’s CEO Daniel Schulman said “We are investing in our new crypto, digital currencies and blockchain business unit, in order to help shape this more inclusive future”.