PayPal has announced the launch of a new service dedicated to cryptocurrencies. It has partnered with the well-known cryptocurrency company, Paxos, that will provide PayPal with liquidity and will also be the custodian of the assets and support trading.
PayPal divulged that the reason behind the introduction of the new service was the recent pandemic and the government’s attention on CBDCs or the Central Bank Digital Currencies. A spokesperson stressed that one out of ten central banks would aim to issue a CBDC in the near future. So, cryptos will change the international financial market and PayPal wants all its account holders to reap the benefits.
The noteworthy thing about this development is that the service will also connect the 26 million merchants that are affiliates of PayPal and allow it as a mode of transaction. It is a breakthrough development for cryptocurrencies as it provides an avenue for the use of cryptos for everyday purchases and payments globally. Charles Cascarilla, Chief Executive Officer, Paxos, revealed that the PayPal global financial system has over 346 million functional accounts of users and merchants. So, its online payment system of PayPal has the chance to control the size and reach of crypto markets in the years to come.
Dan Schulman, CEO, PayPal, emphasized the significance of operating with the central banks and financial regulators. As the concept of CBDC is still developing, getting mileage out of the crypto-based transactions will be difficult for new entrants in this field. But, PayPal’s mammoth user base will make this new service a success. It can take the leverage of the cryptocurrencies already present in the digital currency market through Paxos.
The most popular cryptos will be available for purchase on the PayPal digital wallet in the initial stages. Account-holders can buy, hold, and sell Bitcoin, Ethereum, Litecoin, and Bitcoin Cash, etc., from their PayPal wallet and transact on the merchant websites associated with this payment system. This convenient service is expected to be rolled out in a few weeks.
PayPal has assured its users that crypto transactions, i.e., both buying and selling, will be free until the end of the year 2020. There will be no charges for even crypto storage on its digital wallet. Sources from PayPal also revealed that the company intends to extend the service to Venmo, a mobile payment service owned by PayPal, and other international markets.