A letter from Paypal confirms rumors that the electronic payments giant will accept cryptocurrencies into its system.
A few days ago there were rumors about the possible incursion of Paypal within the world of digital assets and cryptocurrencies, , to the point that several claimed that the electronic payments giant was hiring a technology expert blockchain for the development of its new platform.
Well, the rumors were confirmed through a letter issued by Paypal, where it is revealed that the platform is indeed working on the development of a new payment system that supports cryptocurrencies. This is part of the work that Paypal has been doing after its withdrawal from the project. Pound Facebook.
Paypal's recently published letter was addressed to the European Commission as part of a response to the public consultation The letter was submitted by the Commission last year on the possibility of creating a regulatory framework that integrates digital assets. In the letter, PayPal states that the organization joined the Libra project in order to learn about new technologies, but that after developing a proactive approach, it decided to withdraw and begin to venture into the field of digital assets and cryptocurrencies on its own, as it considers that these assets have become a fundamental aspect for future development.
With the decision to abandon Libra, Paypal focused its efforts on developing a new vision to prioritize existing commercial needs among the population, such as the integration of cryptoassets into its global payment system.
Details of Paypal's letter confirming cryptocurrency rumors
The letter from Paypal to the European Commission confirms what several people close to the organization have already been saying, although to date Paypal has not made an official statement on the matter. Nevertheless, the letter states that due to the importance that cryptocurrencies and digital assets are currently acquiring, the organization is studying how to integrate and use them to guarantee greater financial inclusion and reduce several of the problems presented by traditional financial services.
It is worth remembering that Paypal is an organization with more than 22 years in the market that provides one of the most widely used electronic payment systems worldwide, with more than 300 million active accounts and hundreds of thousands of new customers joining the platform every day. This organization aims to democratize financial services and the digital economy, as well as facilitate access to digital payment systems for unbanked people.
In Europe, this company is licensed to provide banking services in Luxembourg, serving a total of 95 million people between clients and organizations in 31 European jurisdictions.
Will PayPal's inclusion be beneficial for the crypto ecosystem?
Several experts argue that Paypal's move to include cryptocurrencies and other digital assets to its global payment platform will significantly increase the exposure of cryptoassets to society. While, since the creation of Bitcoin At present, the ground and adoption that cryptocurrencies have gained is enormous, and this could be even greater if a platform like PayPal integrates them into its services.
However, to date the platform does not support payments, purchases and exchanges with cryptocurrencies, to the point that users who use Paypal to acquire crypto assets are blocked from their accounts.
PayPal's regulatory proposal to the EU
As part of the public consultation and based on the massive presence of this organization in the European territory, Paypal points out that the European Union must clearly establish a series of definitions regarding the different companies and businesses that work with crypto assets, in order to achieve sustainable regulation for cryptocurrencies in the region.
Likewise, PayPal needs to verify that companies and organizations are duly authorized by the competent entities to manage crypto assets, ensuring full compliance with regulatory policies. Definitions of cryptocurrency-related activities and the companies that will carry them out will encourage many other organizations to participate within the crypto ecosystem, as well as prevent malicious actors from taking advantage of the uncertainty surrounding these issues. These actions will greatly help protect consumers and investors who want to venture into the world of digital assets.
Likewise, the organization suggests that the EU integrate digital assets and cryptocurrencies into AML/CFT regulations to minimize the potential risks associated with the use of these assets. Lastly, PayPal also points out that due to the constant evolution and development of these technologies, the regulations established by the EU must have a neutral approach, in order to support innovation and constant change.
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