PayPal to Launch Crypto Services in the ‘Coming Weeks’
The online payments giant PayPal (NASDAQ : PYPL), is now ready to allow cryptocurrency buying, selling and holding on its platform. This was officially confirmed by the company on Wednesday.
Although there is no set launch date, services will be available in the coming weeks for all major digital currencies such as Bitcoin, Ethereum and Litecoin. These services were created by Paxos, a crypto brokerage company that was launched this year.
The company will also allow its users to use digital currencies to pay to all 26,000,000 merchants it has on its network, by the early 2021.
Dan Schulman, PayPal CEO and president, stated that the shift to digital currencies was inevitable. It will bring with it clear benefits in terms of financial inclusion, access, efficiency, speed, resilience, and the ability of governments to disburse money to citizens quickly.
PayPal’s interest is the cryptocurrency market was evident, given its past ties to the Facebook-led Libra Association and leaked reports that also revealed developments in crypto-based services behind closed doors.
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Additionally, the California-headquartered company has gained a conditional license from the New York State Department of Financial Services (NYDFS). The services will only be available to customers in the United States at launch. However, the company plans to expand internationally.
Although PayPal has yet to launch cryptocurrency services on its platform, some other US-based financial service companies like Robinhood and Square are already offering digital currencies.
Given the platform’s global reach, PayPal’s entry into the market is still significant. It currently has 346 million accounts in both domestic and international and processed $222 billion worth of payments in Q2 2020.
Schulman said that he was eager to collaborate with regulators and central banks around the globe to provide support and help shape the role digital currencies will have in the future global finance.