Recently, PayPal updated its website and launched a new "Cryptocurrency Center" feature that allows users to hold and interact with cryptocurrencies such as Bitcoin directly within their accounts. The launch comes just days after the payments giant launched its PYUSD stablecoin.
PayPal has added a cryptocurrency hub feature to its terms and conditions. The feature will enable users to buy and sell cryptocurrencies and make purchases using funds stored in their PayPal accounts. Additionally, it will facilitate conversions between the recently launched PayPal USD (PYUSD) stablecoin and other crypto assets. Additionally, it will allow users to use proceeds from cryptocurrency sales to make purchases through PayPal.
However, it is worth noting that users do not hold the digital assets themselves. Instead, blockchain infrastructure company Paxos or other authorized service providers will provide custody, trading and transfer services for these cryptocurrencies.
While this new feature is undoubtedly exciting, not all PayPal users will be able to use it right away. The company will decide who will explore this new product on a case-by-case basis.
To qualify, users must have a personal PayPal account and a balance account in good standing. In addition, PayPal will verify necessary identifying information such as name, physical address, date of birth and taxpayer identification number.
PayPal may require users to provide additional information to verify their identity, such as a copy of a government-issued photo ID or proof of residence, such as a utility bill. In some cases, users may even be required to provide biometric information for authentication.
Once Crypto Hub is launched, it will be directly linked to usersâ existing PayPal accounts and can be accessed using the same credentials. "The login credentials for your personal PayPal account will be used as credentials to access your Cryptocurrency Center as part of your Balance account," PayPal said.
PayPal launches stablecoin sparks concerns
PayPalâs new feature comes just days after the company announced the upcoming launch of its PYUSD stablecoin. The USD-pegged asset is issued by Paxos and will be backed by USD deposits, Treasury bills and similar cash equivalents.
According to reports, the launch of PayPalâs stablecoin could be significant for the future of cryptocurrencies.PayPal has 420 million users. If a majority of the companyâs users accept its stablecoin for low-fee transactions, merchants will follow suit, which could further drive cryptocurrency adoption and payment use of digital assets.
