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  • Writer's pictureL Xu and M Bacina

PayPal promotes payments with digital currency

PayPal announced in partnership Paxos Trust Company, that PayPal will be offering customers the ability to buy, hold and sell digital currency directly from their PayPal accounts in the coming weeks.

The launch is only to US customers and initially featuring only major digital currencies Bitcoin, Ether, Bitcoin Cash and Litecoin.

Dan Schulman, President and CEO of Paypal said:

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 payment systems; and the ability for governments to disburse funds to citizens quickly.

Paypal was also the first company to receive a conditional Bitlicense from the the New York State Department of Financial Services (DFS) or virtual currencies. The Bitlicense is granted under a new framework to promote a well-regulated virtual currency marketplace for the benefit of New York Customers announced in June 2020.

Mr Schulman also stated:

We are proud to become the first company to receive a conditional virtual currency license from the New York State Department of Financial Services. This approval represents an important step forward in our goal to contribute to the evolution of the regulatory framework for digital currency and help our customers safely and responsibly engage with cryptocurrencies.

The Bitlicense was granted to PayPal in partnership with the Paxos Trust Company, which is a New York company that will be providing custody of the digital currency.

The new offering is a signal of PayPal's plans to significantly increase digital currencies' utility by making it available as funding source for purchases at its 26 million merchants worldwide to its over 300 million customers. This launch confirms the rumours we reported on earlier in the year after speculation of a potential Bitcoin integration with PayPal.


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