Vice-president PayPal on blockchain and cryptocurrencies said the platform will soon allow users to withdraw cryptocurrency from the platform to external wallets.
May 26 PayPal announced , which will allow users to withdraw cryptocurrency from their platform to third-party wallets. Previously, users could only buy and sell cryptocurrency on the platform, which was a major problem for some users.
Jose Fernandez da Ponte, VP of Blockchain and Cryptocurrencies at PayPal, said at a crypto conference that making the entire process open is paramount.
“We want to make it as open as possible, and we want to give our consumers a choice that allows them to pay in whatever way they want to pay. They want to bring us their cryptocurrency so that they can use it in trade, and we want them to be able to pick up the purchased cryptocurrency and deliver it to the destination of their choice. "
Ponte did not give a date when the function will be launched. If the past changes remain in effect, it will take several months. It was roughly the same amount of time that elapsed between PayPal's announcement of cryptocurrency support and the actual launch.
Ponte also answered questions about the potential launch of PayPal stablecoin, saying it is too early to address the matter. However, he mentioned that stablecoins and CBDC will coexist.
Stablecoins have been the subject of controversy between regulators and incumbent financial institutions. Some regulators feared this would encroach on sovereign power, while others said they could be regulated. The Facebook Diem project has been at the center of these discussions.
PayPal's decision could have a big impact on cryptocurrency
Now that users can move assets off the platform, this could spark a new wave of purchases. Of course, users will be happy to store their digital assets in safer storage.
It's unlikely that most PayPal users are tech-savvy and have bought crypto before. This group of people is already well versed in cryptocurrency and has several alternatives that provide benefits for several reasons.
Most likely, PayPal will help those who were in difficulty and did not understand how to start investing. The platform provides an affordable and convenient way to buy an asset, while novice users do not need to worry about the technical intricacies of the exchange.