2020 was the year of common crypto adoption, and the PayPal service based on Bitcoin, Ethereum, Litecoin, and others was a turning point. The service enables its US-based customers to buy, sell, and hold these cryptocurrencies.
Most recently, the payment processor also enabled a crypto checkout service and crypto trading with its subsidiary Venmo. Thus his customer in the USA can shop with PayPal from millions of affiliated merchants. The company has slowly expanded its service and plans to expand to 350 million users worldwide.
Jose Fernandez da Ponte, PayPal’s vice president of global business development, spoke at CoinDesk’s consensus conference. The executive recognized the need for the company’s users to have more “freedom” and control over their tokens.
Fernandez da Ponte said PayPal cares about the “utility” of cryptocurrencies, adding that that feature maximizes when users can move them (their tokens).
The company enables its users to transfer crypto from the PayPal wallet to their personal wallets and other addresses. Fernandez da Ponte said the company hopes to deliver this functionality “soon”.
For this new feature, the payment processor seeks to provide technological optimization while complying with the applicable regulations. The executive said:
We want to make it as open as possible and give our consumers a choice so they can pay in any way they want to pay. They want to bring their crypto to us so they can use it in trading and we want them to take the crypto they have purchased and bring it to the destination of their choice.
How PayPal can help increase the price of Bitcoin and Ethereum
Similar to Facebook’s Libra project, the payment company is said to have been working on its own digital asset. However, PayPal’s plans to launch its own stablecoin are still in the early stages of development.
The control of the Central Bank’s (CBDC) digital currencies and digital assets by banking institutions seems like a logical step in the evolution of money. This makes it easier for bankers to meet their “two priorities”: financial stability and access for all to the financial system.
Unlike many others, Fernandez believes that both CBDCs and stablecoins can coexist in a multi-asset world, but stressed that there is still much to be done in this area.
Sometimes we position the debate as CBDCs versus stablecoins, but it’s a fake debate. There is no compromise. We believe they will coexist. (…) A lot of Powerpoints have been written on the subject of CBDCs, but not a lot of code.
With Grayscale, PayPal was one of the main entities absorbing BTC, ETH and other cryptocurrencies. Because of their bit license, the company must hold real crypto with a 1: 1 parity for every device purchased by its users. This 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 assets are rebounding from a major correction last week and are still showing no bullish signs on higher time frames.