PayPal Holdings Inc. appears to be serious about adopting cryptocurrencies. Coindesk reports that PayPal has already (or almost) entered into a commercial collaboration with Paxos, a US company regulated to operate with crypto assets that offers custody and movement services for cryptocurrency funds.
According to Coindesk, the announcement of this collaboration is imminent, but Paxos and PayPal have not released any comment on these rumors.
If PayPal were to "dive" into the world of cryptocurrencies, it would be a very important adoption given the extensive international clientele that the company enjoys.
However, it is not clear which crypto services PayPal will offer, with which cryptocurrencies and in which countries. The USA is likely to be the first country where the service will be tried.
If PayPal respects its current nature, it is easy to assume that it will add a bitcoin currency account (for example) alongside the other fiat currencies already available on the platform. The user can then receive cryptocurrency payments directly to the PayPal account and then convert it, if he wishes, to other fiat currencies according to the rules and commissions that he already applies on the instant exchange between fiat currencies.
Why would PayPal choose Paxos?
As known, PayPal cares a lot about the rules, and is very careful about the regulations in force in each country where it operates. The choice of Paxos would be aimed at continuing in this furrow of compliance with national and international regulations.
In fact, Paxos in 2015 obtained a limited-purpose trust charter from the New York State Department of Financial Services. The company is therefore empowered to store, buy and manage gold and cryptocurrencies on behalf of institutional clients.
The contenders of Paxos
As known, PayPal customers who have an account on Coinbase can make fiat currency transfers in some countries where the service has been activated. In the face of this partnership that has existed for some time, according to Coindesk, the San Francisco exchange would be courting PayPal for being the one to offer the services that the latter may need.
But the European exchange Bitstamp would also be in the game, according to Coindesk. Bitstamp has experience in providing services to third-party companies operating in the payments and banking services sector, in fact it is the provider of the cryptocurrency exchange service for Revolut in Europe.
However, it should be added that Paxos from July 15 is the company chosen by Revolut to offer the same service in the United States. Revolut recently opened up to the US market where it hopes to expand after the extraordinary results achieved in Europe in the past three years.
Will PayPal Really Offer Cryptocurrencies?
PayPal has always cherished the idea of entering the sector. Everyone will remember the support given to Libra by Facebook Inc. since the announcement of the project a little over a year ago, but also the backward movement following the "threats" by the US government towards the Libra project.
In any case, the company will not be able to postpone its choice on crypto assets for a long time because they will be part of the economic and financial future of all of us.
Previous articles on the PayPal-Crypto topic:
- PayPal will support cryptocurrencies, is it important?
I personally believe that sooner or later PayPal will implement cryptocurrencies among its services, and what do you think of it?
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