Paypal, the electronic payments multinational that offers cryptocurrency services, announced that it will soon activate cryptocurrency withdrawals and transfers from third-party wallets.
José Fernández da Ponte, vice president of the blockchain and cryptocurrency department at PayPal Holdings Inc., revealed during his participation in the virtual CoinDesk conference, Consensus 2021, that the company plans to activate cryptocurrency operations to and from external wallets very soon. According to his statements, the activation of this new functionality is essential for the growth and expansion of the cryptocurrency services offered by the company.
Fernández da Ponte stated that Paypal is developing new strategies to maintain an open approach in its services with cryptoassets, so that it can provide and guarantee a wide range of options to its customers. more than 380 million active users, according to data from The report of Statista.
Paypal is supporting cryptocurrencies and digital assets like Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) y Bitcoin Cash (BCH) since late last year, although at that time the service was activated only for select US customers. A few months later, in March of this year, it authorized payments with crypto assets in the accounts of all its clients and users, allowing them to use their cryptocurrencies and digital assets, legitimately, to carry out operations in any of the millions of businesses that they support. payments with this company in the world.
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Transfers of crypto assets to external wallets
Until now, the cryptocurrency services offered by Paypal only allow users to manage and dispose of their digital assets within the same platform; That is, the company's clients can only use their cryptocurrencies to make physical or online payments in the millions of businesses that accept payments with Paypal in the United States and the world, but they cannot make payments or use their cryptocurrencies outside the wallet. enabled on the platform, which for many represents a significant barrier and limitation to crypto adoption.
Given this, Paypal's vice president of blockchain and cryptocurrencies assured that the company wants to give users the freedom to bring or take their cryptocurrencies to the “destination they want”; so it is important for Paypal to integrate support for Wallets external, and allow its users to manage their cryptoassets in the way they prefer.
According to Fernández da Ponte, the company is understanding that cryptocurrencies will have greater use cases and utility if its users are allowed to move their holdings on and off the platform, and not limit them to operating only within it.
“[PayPal wants its customers] to bring their cryptocurrencies, and be able to use them in commercial operations… and we also want them to be able to take the digital currencies they purchased and send them to the destination they want… We understand that there is more utility for those tokens if they can be moved , so we are definitely exploring how we can allow people to transfer cryptocurrency to and from their PayPal addresses.”
When the company announced its new services with cryptoassets, Dan Schulman, president and CEO of PayPal, stated that the intention was to allow its millions of users to buy, sell, hold and pay with cryptocurrencies, driving the use and massive acceptance of digital currencies in the world, as a source of legitimate financing and as a fast, safe and effective means of payment.
Impact on the crypto world
Although Paypal has not defined a date for the activation of the new withdrawal function to third-party wallets, as explained by its vice president of blockchain and cryptocurrencies, experts already point out that this new function will attract a large number of investors, motivated by security. and platform flexibility.
To date, Paypal has made great strides in the crypto world. In November, the company expanded its clients' cryptocurrency purchase limits from $10.000 USD to $20.000 USD weekly, driven by the high demand it was seeing for its new crypto services. For the month of January, he revealed his participation in the services of TaxBit, a firm dedicated to the development of tax automation software for cryptocurrencies.
Later, at the beginning of March, confirmed the purchase of Curv, a developer of cloud-based digital platforms and infrastructures. Paypal announced that the acquisition of Curv will allow it “accelerate and expand its initiatives to support cryptocurrencies and digital assets”.
For the current year, Paypal Holdings Inc. plans to take its cryptocurrency products to other markets globally, driving the potential and importance of cryptocurrencies and digital assets as transformative payment instruments.
Bitcoin price recovered more than 2% following the Paypal news, trading near $40.000 again, at the close of this edition.
Continue reading: Paypal, a payments giant that joins the cryptocurrency ecosystem
