PayPal has confirmed that it will launch a suite of cryptocurrency services in 2021, allowing its customers to buy, hold, sell and convert digital currencies.
The San Jose tech giant has partnered with regulated crypto exchange PAXOS, in order to launch and guarantee its new services, which the company intends to add to its flagship e-wallet and payment processing services – in addition to extending crypto transactions for its mobile payment subsidiary Venmo.
The launch of PayPal’s new service follows a review of consumers trends under COVID-19 lockdown, in which PayPal stated that it would broaden its currency range beyond central banks.
Marking a key 2021 objective, PayPal stated that its entry into Crypto transactions would significantly increase the global utility of cryptocurrencies as a day-to-day transaction.
Stating its intent to become a dominant player in cryptocurrency transactions, PayPal stated that no other payment could guarantee direct access to 26 million merchants worldwide
“The shift to digital forms of currencies is inevitable, bringing with it clear advantages in terms of financial inclusion and access; efficiency, speed and resilience of the payments system; and the ability for governments to disburse funds to citizens quickly,” said Dan Schulman, president and CEO, PayPal.
“Our global reach, digital payments expertise, two-sided network, and rigorous security and compliance controls provide us with the opportunity, and the responsibility, to help facilitate the understanding, redemption and interoperability of these new instruments of exchange. We are eager to work with central banks and regulators around the world to offer our support, and to meaningfully contribute to shaping the role that digital currencies will play in the future of global finance and commerce.”
PayPal confirmed that it has been monitoring cryptocurrency developments for the past 5-years, having developed an internal blockchain-focused research team.
The firm has also been granted a first-of-its-kind conditional Bitlicense by the New York State Department of Financial Services (NYDFS).
“NYDFS’ approval today follows our June 2020 announcement for a new framework for a conditional Bitlicense to encourage, promote, and assist interested institutions to have a well-regulated way to access the New York virtual currency marketplace in a way that is both timely and protective of New York consumers, through partnerships with New York authorized virtual currency firms,” said Linda A. Lacewell, superintendent, NYDFS.
“NYDFS will continue to encourage and support financial service providers to operate, grow, remain and expand in New York and work with innovators to enable them to germinate and test their ideas, for a dynamic and forward-looking financial services sector, especially as we work to build New York back better in the midst of this pandemic.”
