Paypal joins the crypto ecosystem and brings a new financial solution for investors
By Rafał - 2020-10-21
Following the today’s announcement, PayPal has recently been granted a first of its kind conditional Bitlicense by the New York State Department of Financial Services and will begin enabling its 346 million users to to buy, hold and sell cryptocurrency directly from their PayPal account from early next year. At start, customers across the world will be able to use bitcoin, ethereum, bitcoin cash and litecoin to shop at the firm's 26 million merchants worldwide, starting in early 2021. Consumers will be able to instantly convert their selected cryptocurrency balance to fiat currency, with certainty of value and no incremental fees or additional/hidden costs. Most importantly, all transactions will be settled with fiat currency at their current PayPal rates.
Paypal and Paxos Cooperation and further plans
PayPal has also teamed up with Paxos, a New York State chartered trust company, to provide cryptocurrency trading and custodial services to its users. The CEO of Paxos , Charles Cascarilla , shared that :
“Paxos is pleased to partner with PayPal to support their entry into the cryptocurrency marketplace,” We were the first company to receive a New York Trust Charter for virtual currency business activity so it is fitting that we are also the first to support the Department’s new conditional licensing framework. PayPal’s selection of Paxos is a reflection of New York’s status as the gold standard for cryptocurrency regulation”
In the future, PayPal will continue exploring the potential of distributed ledger technologies to improve financial services and assure they are faster, more secure and less expensive. The company intends to work hand-in-hand with regulators, governments and central banks in this quest.