PayPal, the payments company, will launch a function to buy, sell and hold bitcoin and other cryptocurrencies. Its Venmo mobile payments service will add this capability in 2021.
The service will be available to PayPal account holders in the U.S. in the coming weeks and initially feature #Bitcoin, #Ethereum, #BitcoinCash and #Litecoin directly within the PayPal digital wallet.
— PayPal (@PayPal) October 21, 2020
PayPal expects the new feature to spur global use of cryptocurrencies and prepare the network for central-bank digital currencies.
“We are working with central banks and are thinking about all forms of digital currencies and the role PayPal could play,” CEO Dan Schulman said.
Among the supported cryptocurrencies are Bitcoin, Bitcoin Cash, Ethereum and Litecoin.
It is expected that PayPal customers will be able to use bitcoin to pay for goods at 26 million points of sale. On the company’s site, states that for US users the new capability will be available in the coming weeks, and for users in other countries — in early 2021.
Cryptocurrency transactions will be automatically converted into fiat. This means merchants will not have to step outside their familiar traditional payment rails.
To implement the new feature, the company secured a restricted license from the New York State Department of Financial Services.
Representatives of the department noted that such permission is granted to organizations that partner with licensed firms. In this case, PayPal partners with Paxos.
As noted earlier, the payments giant chose Paxos to manage its crypto assets in July 2020.
Rumors about PayPal adding cryptocurrency support had been circulating for some time. In June it was reported that the payments system and Venmo would offer users the option to trade digital assets within three months.
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