Moving forward, more financial platforms are set to take up cryptocurrency services and global payments giant PayPal has just joined the fray. According to the firm, they are planning to start allowing its members to withdraw cryptocurrency to third-party wallets soon.
Progressing with the times
PayPal has been a primary player in the digital payment market and its Blockchain Lead has stated in an event recently that they are currently planning to include a withdrawal function. This was said at the CoinDesk’s Consensus 2021 Conference by Jose Fernandez de Ponte. Currently, PayPal only allows the purchase of Bitcoin and other digital assets, a move that was launched back in October 2020.
What would change then?
PayPal plans to make this function as open as possible so that its members get more options to make payments with the modes they prefer. This means that members would start being able to bring their digital assets to PayPal and then use it in whichever way they like or to transfer their crypto out from PayPal to another platform.
PayPal developing own crypto?
There have also been some rumors that PayPal was developing its own stablecoin (named PayPalCoin) but this has been downplayed by the company stating that it is too early for them to do so. The issue of CBDCs (central bank digital currencies) and stablecoins have been going on for a while and PayPal has been meeting up with central bankers on this. In the near future, both the coins would most likely co-exist and complement each other instead of competing against one another. When that happens, it would be no surprise to PayPal will play an integral role in the distribution of CBDCs. PayPal also strongly believes that the current estimate of 2% global adoption of digital currencies still has a long way to go as these are mostly early adopters. Once it reaches 10% (pass the early adopter’s stage), then it would become more interesting by then. 2021 has been positive for PayPal with the company reporting better results than expected with adjusted earnings in the first quarter at US$1.22 billion. The average estimate was somewhere around US$1 billion.