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One of the largest payment service providers globally, PayPal, is launching new cryptocurrency offerings. Under the newly introduced changes, it will be possible for PayPal users to transfer cryptocurrencies between PayPal and other digital wallets.
PayPal noted that the launch of this new service stems from increased demand from users. The rate of cryptocurrency adoption over the past year has been significantly high, and institutions are now being forced to move into the crypto space to fulfill this demand.
PayPal introduces crypto transfers
PayPal announced these changes on June 7. The changes allowed users to transfer cryptocurrencies between the payments platform and other wallets. The new move will allow users to send the supported cryptocurrencies such as Bitcoin, Ether, Bitcoin Cash, and Litecoin to external wallet addresses.
The wallet addresses supported by this new service by PayPal include hardware wallets and exchange accounts. The move could foster the interaction of new users with cryptocurrencies. PayPal is a leading payments platform with global reach, and the number of users on the platform could record massive growth now that cryptocurrency offerings have been launched.
Users could also use PayPal to send cryptocurrencies to other users on the application. The move is similar to the move that was made by Revolut, another neobank, in May last year. The company expanded its cryptocurrency offerings during the year, which has triggered notable adoption of crypto for payments and other purposes in the areas where the neobank is situated.
PayPal already has the regulatory groundwork set for this new service. The announcement said it had received a full license from BitLicense through the New York Department of Financial Services (NYDFS). The license was converted from the conditional version of the license.
The SVP and GM of blockchain, crypto, and digital currencies at PayPal, Jose Fernandez da Ponte, commented on the development, saying, “Adding the ability to transfer, send, and receive cryptocurrencies is another step in our journey to building a more inclusive and effective financial system.”
The executive further said that the company was pleased to work with its customers and allow them to connect with other exchanges, wallets, and applications. “We will continue to roll out additional crypto features, products, and services in the months ahead,” he added.
In April, the CEO of PayPal, Dan Schulman, reported on the company’s quarterly earnings call. The earnings call said that the company would increase its efforts to support the growth of its digital wallet. Earlier in the year, the company said that it was looking toward launching a stablecoin backed by the US dollar.
Technology companies have been committed to having stablecoins that will support their growth. However, the regulatory clarity about stablecoins has increased significantly, making it hard for companies to launch their own tokens. Meta was among the companies that had attempted to launch stablecoins, but they hit a legal block.
PayPal’s CEO is bullish on crypto
The CEO of PayPal has shown a bullish stance regarding cryptocurrencies. Schulman has previously talked about the potential gains that could be made by the cryptocurrency market in the future.
In 2019, Schulman admitted that he owned Bitcoin. During a recent speech in Tel Aviv, Schulman said that he believed that private cryptocurrencies, central bank digital currencies (CBDCs), stablecoins, and digital wallets could change the monetary sector.
“I’m very excited about what crypto and digital ledger technology can do to the financial system going forward. I think the initial things that everyone thinks about crypto, buying and selling it, and what the price of Bitcoin is going to be tomorrow, that’s the least interesting part about digital currencies to me,” Schulman added.