PayPal announced the launch of a new service enabling its customers to buy, hold and sell cryptocurrency directly from their PayPal account.
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This signals the company’s plans to significantly increase cryptocurrency’s utility by making it available as a funding source for purchases at its 26 million merchants worldwide.
Mainstream adoption of cryptocurrencies has traditionally been hindered by their limited utility as an instrument of exchange due to volatility, cost and speed to transact.
However, the promise of advanced technological platforms offers the possibility of mainstreaming digital currencies.
According to a survey by the Bank for International Settlements, one in 10 central banks – representing approximately one-fifth of the world’s population – expect to issue their own digital currencies within the next three years.
“The shift to digital forms of currencies is inevitable, bringing with it clear advantages in terms of financial inclusion and access; efficiency, speed and resilience of the payments system; and the ability for governments to disburse funds to citizens quickly.”Dan Schulman, president and CEO, PayPal
“Our global reach, digital payments expertise, two-sided network, and rigorous security and compliance controls provide us with the opportunity, and the responsibility, to help facilitate the understanding, redemption and interoperability of these new instruments of exchange.”
“We are eager to work with central banks and regulators around the world to offer our support, and to meaningfully contribute to shaping the role that digital currencies will play in the future of global finance and commerce,” added Schulman.
PayPal to Support Select Major Cryptocurrencies
To increase consumer understanding and adoption of cryptocurrency, the company is introducing the ability to buy, hold and sell select cryptocurrencies, initially featuring Bitcoin, Ethereum, Bitcoin Cash and Litecoin, directly within the PayPal digital wallet.
The service is now available to PayPal account holders in the US. The company plans to expand the features to Venmo and select international markets in the first half of 2021.
The service is enabled in the US through a partnership with Paxos Trust Company, a regulated provider of cryptocurrency products and services.
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