Home Latest PayPal users will be able to withdraw crypto to external wallets

PayPal users will be able to withdraw crypto to external wallets

113
0

Last fall, PayPal launched its own cryptocurrency service. Its 70 million customers have gained access to Bitcoin, Ethereum, Litecoin and Bitcoin Cash.

At the beginning of May 2021, it became known that this giant could even release its own stablecoin in the future.

The company didn’t stop at the achieved results. Reuters reported this week that the payment system is now planning to introduce an option to withdraw cryptocurrency to third-party wallets.

PayPal users will be able to send funds from addresses within this payment system to other accounts deployed on third-party cryptocurrency platforms.

Jose Fernandez da Ponte, VP and General Manager for Blockchain and Cryptocurrencies at PayPal, confirmed that the company is preparing such a decision. But he didn’t specify when the withdrawal function will appear.

It is the impossibility of withdrawing cryptocurrency to third-party wallets that is called one of the shortcomings of the service. However, as we can see, the company is currently trying to solve this problem. After the option appears, they will be able to directly send bitcoins to third-party wallets.

With this function, the company wants to make the service as open as possible and provide consumers with a choice. “They want to transfer cryptocurrency to us in order to be able to use it in commerce, and we want them to be able to transfer the cryptocurrency purchased through us to other locations of their choice”, said Fernandez da Ponte.

The company releases new developments on average every two months, he said, although it is unclear when the withdrawal feature will appear.

Use of cash is declining

Now the user needs to convert cryptocurrency into fiat money. Most likely, the introduction of the service in different countries will take place gradually.

PayPal executives have previously noted a sharp decline in the use of cash. According to Dan Schulman, the use of cash will be reduced to a minimum over the next decade.

Will the integration of the new function of PayPal fall on the shoulders of Paxos?

PayPal partnered with Paxos to launch cryptocurrency trading late last year. American users have access to it. At the end of March, the company allowed customers to pay with cryptocurrency at outlets cooperating with the platform.

Since PayPal uses blockchain infrastructure provider Paxos for Bitcoin transactions, it is likely that the latter will be given the task of integrating a feature that will allow cryptocurrency to be withdrawn to third-party wallets. The company also added crypto-security firm Curv to its portfolio earlier this year. So, the responsibility could fall on their shoulders as well.

Stablecoin?

Commenting on earlier information that PayPal is preparing to release its own stablecoin, Fernandez da Ponte said it was too early to talk about it.

However, he noted that the release of tokens by the branches of the CB is quite a place to be.

In da Ponte’s experience, central banks have two priorities: financial stability and universal access. He sees many ways to achieve stability through digital currencies. Not only through the support of a stablecoin with fiat currency, but also potentially through support through the CBDC. And digital currencies can help expand access to the financial system.

He added that platforms like PayPal is the “natural way” for CBDC to spread to the public when they launch.