Posted 5 months ago | by @devadmin
PayPal will explore adding central bank digital currencies, in addition to enabling users the ability to buy and sell —Bitcoin, Litecoin, Bitcoin Cash, and Ethereum.
Senior executives at global payments giant PayPal have revealed additional details about its plans to integrate cryptocurrencies next year during a Q3 2020 earnings call, including plans to support central bank digital currencies (CBDCs), Cointelegraph reported.
“Clearly the world is rapidly moving from physical to digital,” said PayPal CEO, Dan Shulman.
Shulman citing discussions with central banks, regulators, and crypto industry leaders, stated: “There is no question that digital currencies are going to be rising in importance, having increasing functionality, and increasing prominence.”
“CBDCs […] are a matter of when and how they’re done, and not if.”
PayPal’s chief executive announced that through its scale and influence the company will “help shape the utility of [CBDCs],” including facilitating interoperability with existing payment barriers and promoting acceptance among merchants. Shulman also explained that the legacy financial system was “not working” for ordinary people.
“I do think that our platform and all the new digital infrastructure that we’re putting in place right now can help make that management and movement of money more efficient, less expensive, and faster.”
Last month, PayPal historically announced it would roll-out services allowing customers to purchase, sell, and hold crypto assets in the U.S, Bitboy Crypto reported.
While plans extend to allowing international users to get in on the action early next year. This disclosure sent the markets into a bullish frenzy. The roll-out will also see crypto assets supported by PayPal’s merchant network of almost 30 million vendors.
In the call, PayPal’s executives stressed the intensity by its customers for demand for crypto services, with its CEO noting: “our base is very eager for us to offer these capabilities.”
While just 10% of PayPal’s U.S.-based users currently have access to its crypto services, Shulman noted the rest of the country is expected to come online before December.
“Our waiting list was two to three times what our expectations were.”
“We’re seeing people who have already bought crypto open their wallet several times a day to check out what’s happening with their crypto investments,” he added.
Responding to the interest, Shulman proclaimed that PayPal will increase its weekly crypto purchase limit from $10,000 to $15,000.
Shulman also shared that PayPal’s virtual currency services will be made available to international customers, alongside launching on its mobile payments app Venmo, during the first half of next year.
“Over the course of next year, you’ll see us move into a couple of different areas,” the CEO added.
Bitboy Crypto also previously told you how Paypal is about to cause the bull run of 2020 by integrating Bitcoin and cryptocurrency for its 300 million+ users to buy and sell cryptocurrencies.
It was further revealed that Paypal responded to the European Commission in a letter earlier this year. Last year the European Commission opened a consultation about regulating digital assets and cryptocurrencies or what it refers to as crypto-assets. In June, responses were published, including a letter from Paypal stating that it has developed capabilities in the sector since withdrawing from Libra. This follows an earlier CoinDesk report stating PayPal and subsidiary Venmo will offer cryptocurrencies.
The company was additionally one of the initial members to commit to Facebook’s Libra, but it subsequently withdrew along with several other major players.
In the letter to the EU, it outlined this as background: “In 2019, PayPal initially signed a non-binding letter of intent to participate in the Libra Association with the intention of learning more about the proposed use of blockchain technologies to provide financial services to unbanked populations across the globe.”
And it continued: “Since the project’s inception, PayPal has taken unilateral and tangible steps to further develop its capabilities in this area, and therefore – without questioning the value of the project – took the decision not to participate in the Libra Association and to continue to focus on advancing our existing mission and business priorities to democratize access to financial services.”
As Bitboy Crypto detailed with immense research, it’s important to mention that PayPal has been active in the crypto space since as early as 2014. At the time, the company partnered with three bitcoin payment processors, including Coinbase, which allowed merchants in its network to accept Bitcoin as payment.
PayPal has a longstanding relationship with Coinbase, going back as early as 2014. Then two years later in 2016, Coinbase integrated, Paypal and credit cards. In 2018, Coinbase made instant fiat withdrawals to PayPal available for U.S. customers. Last year, European Coinbase users could withdraw to their PayPal accounts, followed by users in Canada, then support was added for the U.S.
Bitcoin is currently trading at [FIAT: $13427.186] DOWN -1.8% in the last 24 hours according to Coingecko at the time of this report.