In its recent announcement on 21 October 2020, California based one of the World’s leading online payment processors – PayPal, has revealed its plan of entering the cryptocurrency industry. For this venture to come into actuality, it has joined hands with Paxos.com.
With this, Paxos Crypto Brokerage is encouraging by building a backend platform for PayPal’s new Service – PayPal Digital Wallet offered to its user through which PayPal users can access the digital asset world. This new service will be launched phase-wise. In its initial phase, the company has planned only to launch this service for its United States users and then going ahead to its 346 Million global customers in the rest of the World.
The United States PayPal community can now buy, sell, and hold Bitcoin, Ethereum, Litecoin, and other Altcoins or cryptocurrencies using PayPal’s cryptocurrency service, i.e., PayPal’s Digital Wallet. Further, in PAX‘s viewpoint, it is an infrastructure building financial institution, and now with this partnership, they have built a digital crypto platform that has opened an advanced gateway to a new spurting Digital Economy.
In its primarily disclosed plan, few features have been revealed, such as traders can buy, sell or only hold, but they cannot withdraw or deposit digital assets, which means once coins are bought they can only be kept in the digital wallet until they are being sold. When asked the reason behind this step or venture, PayPal stated that Firstly, the burgeoning and booming crypto market; Secondly, the COVID-19 pandemic resulting in the economy moving towards being Digital and Cashless in terms of payment.
They also additionally stated this venture of theirs was already in the pipeline from last year. But it got delayed due to its short span liaison with Facebook’s initiated Libra project. However, going further, beginning in early 2021, its users will instantly convert their selected cryptocurrency balance into fiat currency through their digital wallets only without any incremental fees.
PayPal’s merchants will also not be burdened up with any additional charges or fees. This means all transactions done will be settled with fiat currency at their current PayPal rates. Announcing further, PayPal stated that this venture is technologically advanced and is legally and licensed by Regulating Authorities, i.e., PayPal’s crypto custody and trading technological-based is provided, enhanced, and powered by Paxos Crypto Brokerage.
Also, PayPal has received the first-ever virtual currency conditional license from the New York’s State Department of Financial Services. This regulatory licensing and consumer asset protection policy directly facilitates its users or trader’s security and data protection. Moreover, this Partnership venture will open the perspective and approach to an extent towards Blockchain technology transformed financial markets and monetary assets.
With companies like PayPal entering this arena and partnering itself with an efficient and reliable partner such as Paxos, the historical development in the financial cum technology market has begun further spurring towards a brighter and accessible financial ecosystem.