PayPal has launched a cryptocurrency trading service in the U.S. that will allow all eligible PayPal accountholders to buy, hold and sell cryptocurrency directly from their PayPal account. This will also enable cryptocurrency as a funding source for digital commerce at its 26 million merchants worldwide.
PayPal has already received a first-of-its-kind conditional Bitlicense from New York State Department of Financial Services (NYDFS) for the crypto trading service.
The company is initially supporting select cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH) and Litecoin (LTC), directly within the PayPal digital wallet.
The service is now available to PayPal accountholders in the U.S. through a partnership with Paxos Trust Company, a regulated provider of cryptocurrency products and services. It will be expanded to Venmo and select international markets in the first half of 2021.
There are no service fees when buying or selling cryptocurrency through December 31, 2020, and there are no fees for holding cryptocurrency in a PayPal account.
PayPal customers will also be able to use their cryptocurrency holdings as a funding source to pay at PayPal’s 26 million merchants around the globe, beginning 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. PayPal merchants will have no additional integrations or fees, as all transactions will be settled with fiat currency at their current PayPal rates.
PayPal has been exploring the potential of digital currencies through partnerships with licensed and regulated cryptocurrency platforms and with central banks around the world.
Mainstream adoption of cryptocurrencies has traditionally been hindered by their limited utility as an instrument of exchange due to volatility, cost and speed to transact. However, advanced technological platforms now offer the possibility of mainstreaming digital currencies.
Source: Read Full Article