Crypto just had a chance to generalize in 2021.
What we know:
- In a press release this morning, PayPal said buy, sell and hold features will be available in the coming weeks. but some users, the features are already available.
- PayPal implementation does not allow Bitcoin or other tokens to withdraw. Once you buy or deposit, the service is your crypto bank until you sell.
- Initially, the service supports Bitcoin, Ethereum, Bitcoin Cash, and Litecoin
- This is a developing story, stay tuned for updates with full coverage below.
PayPal officially confirmed its entry into the cryptocurrency market on Wednesday. The payments giant, with 346 million active accounts worldwide, has pledged to make cryptocurrency “a source of funding for purchases from its 26 million merchants around the world.”
CoinDesk first announced that PayPal was planning to switch to crypto in June of this year, citing anonymous sources. A month later, CoinDesk reported that the Paxos exchange had been selected to support PayPal in its crypto efforts.
In a blog post on Wednesday, PayPal said the need for digital payments of all kinds was driven by the COVID-19 pandemic, although the move has been in the planning stages since at least late last year, and as a result of PayPal’s short relationship with Facebook – Libra project created.
Starting in early 2021, PayPal customers will be able to instantly convert their selected cryptocurrency balance to fiat currency, with certainty of value and at no additional cost, PayPal said. Its merchants will have no integrations or additional fees, as all transactions will be settled in fiat currency at their current PayPal rates.
“Indeed, cryptocurrency is simply becoming another source of funding inside the PayPal digital wallet, adding enhanced utility to cryptocurrency holders, while addressing previous concerns about volatility, cost and speed. cryptocurrency-based transactions, ”the blog said.
PayPal gets BitLicense
As part of Wednesday’s formalities, the New York State Department of Financial Services (DFS) said it had granted PayPal the first “conditional BitLicense” for a partnership with Paxos Trust Company, allowing customers to buy and sell cryptocurrencies.
DFS said it was delivering on financial services Superintendent Linda A. Lacewell’s pledge last year to take a fresh look at its regulatory framework for virtual currencies, with a view to fostering innovation in New State. York.
“DFS’s approval today follows our June 2020 announcement of a new framework for conditional Bitlicense to encourage, promote and assist interested institutions to have a well-regulated means of accessing New York’s virtual currency market in a manner that is both timely and protective. New York consumers, through partnerships with licensed virtual currency companies in New York, ”Lacewell said in a statement.
“DFS will continue to encourage and support financial service providers to operate, grow, stay and grow in New York City and work with innovators to enable them to germinate and test their ideas, for a sector of dynamic and forward-looking financial services, especially as we work to better rebuild New York in the midst of this pandemic, ”she said.
Now, with DFS approval, New York State-chartered Paxos will be able to provide trading and custody services to PayPal to enable the fintech giant’s 346 million customers to purchase, to sell and hold crypto-currencies. Four digital assets approved by DFS will initially be available: bitcoin, bitcoin cash, ether and litecoin, according to the DFS statement.
Since 2015, DFS has approved 26 entities to engage in virtual currency business in New York State, including Wednesday’s announcement.
Read more: PayPal chooses Paxos to provide crypto for new service, sources say
Update (October 20, 13:52 UTC): Added new information and context to introductory paragraphs.