PayPal’s general manager of blockchain, crypto, and digital currencies, Jose Fernandez da Ponte, gave the news during the CoinDesk Consensus 2021.
“We want to make it as open as possible, and we want to give a choice to our consumers … They want to bring their crypto to us so they can use it in commerce, and we want them to be able to take the crypto they have bought with us and take it to the destination of their choice,” Fernandez said.
How the New Service Will Work
If PayPal launches the new service, it will enable users of the payments platform to transfer cryptocurrencies held in their accounts to third-party wallets.
Currently, PayPal’s terms and conditions dictate that users cannot send digital assets to others, and they cannot withdraw crypto assets from their holdings on the platform to an external wallet. Those who want to take crypto assets away from the platform can only do so by selling the token and withdrawing the cash proceeds from the platform or use the cash proceeds to make purchases on the platform.
With the new changes, users will not have to sell their cryptocurrencies, but they will directly send it to friends and family using an external wallet or use it directly to make purchases in real-time. This will boost mobility on how PayPal users are using their cryptocurrency hub.
According to Fernandez, the newly implemented change will also apply to Venmo users. However, he did not give the exact date when the service will commence. PayPal is currently supporting four major cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.
PayPal and the Crypto Market
PayPal announced that its users would be allowed to purchase and sell cryptocurrencies on the platform in October. However, mobility has been an issue because crypto holders could not move cryptocurrencies out of the platform.
At the beginning of May, PayPal’s CEO, Dan Shulman, stated that PayPal’s venture into cryptocurrencies had been very successful. He made this announcement stating that the crypto division had influenced the firm’s impressive results during the first quarter. Shulman had in an earlier statement said that crypto demand on PayPal was more than what had been expected.
In the first quarter of 2021, PayPal also launched a ‘checkout with crypto’ feature that would enable users to make payments to millions of merchants using cryptocurrencies. The firm also initiated a crypto service on Venmo that would allow users to purchase, trade, and hold virtual currencies. The feature was only opened to US users, but the platform committed to also rolling out to other countries where PayPal is supported.
When PayPal launches the new feature that will allow users to transfer their cryptocurrencies from the platform to external wallets, it will play a great role in helping the crypto market recover past the current resistance levels. It will also help in reinstating investor confidence in cryptocurrencies.