On June 8, 2022, PayPal announced a significant update on its platform. As per a press release from PayPal, the New York Department of Financial Services has awarded the company a full BitLicense. PayPal is the first company to exchange a conditional BitLicense for a genuine BitLicense. Users can now use the application to conduct cryptocurrency transactions, enabling the platform to interface with various crypto wallets and services. Following this change to the platform, Bitcoin, Dogecoin, and other cryptocurrencies can be sent using PayPal. It also includes other crypto platforms, Coinbase, Metamask, WalletConnect, etc.
Previously, PayPal customers could only purchase, sell, hold, and pay using popular cryptocurrencies in selected countries like the United States and the United Kingdom. However, the most recent upgrade allows US-based users to send and receive cryptocurrency, transfer coins from third-party exchanges to PayPal, and transfer coins into external wallets.
Cryptocurrency has grown to be a significant market in today’s investment community, with Bitcoin still worth tens of thousands of dollars and currencies like Dogecoin experiencing periodic popularity spikes. PayPal is the most recent entity to join the ecosystem. It is effectively transforming the platform into a full-fledged cryptocurrency wallet.
PayPal’s debut into the cryptocurrency market was expected, as many corporations seek to profit from the constantly changing and turbulent sector. Indeed, even GameStop is getting ready to launch an NFT marketplace and a crypto wallet and branding to go with it. Being one of the world’s most popular online money transfer providers, Paypal has a vested interest in allowing consumers to send cryptocurrency through its platform.
What is BitLiscense?
New York’s BitLicense was proposed in 2015 to govern businesses that allow customers to buy and trade cryptocurrencies within the state. On the other hand, some crypto enthusiasts have opposed the policy, claiming that it could make it more difficult for companies to get involved in cryptocurrency. New York proposed a conditional BitLicense in 2020, apparently simplifying obtaining the documentation.
Companies are urged to receive a full BitLicense since the guidelines state that those having a conditional license will attempt to seek and secure a complete BitLicense in the future. PayPal accepted this advised approach by receiving a conditional BitLicense in 2020 and a full license two years later. Last year, it increased the functionality by allowing users to pay with Bitcoin, Litecoin, and Ethereum. Last year, Venmo, which PayPal owns, added a cryptocurrency feature.
The decision to invest more heavily in this industry comes as the price of all major cryptocurrencies has fallen, partly due to the decoupling of several stablecoins from their pegs, wiping out billions of dollars in value.
Overall, besides the crypto exchange feature, PayPal has introduced many additional options for users to interact with cryptocurrency on their site. PayPal also asserts that users can send cryptocurrency to friends and relatives without fees or network charges. And in the coming weeks, more users in the United States will be able to access these services. PayPal has become a latecomer to the crypto market, but it is putting significant effort into facilitating cryptocurrencies into its ecosystem.
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Kevin Mudd, EU Regulated Fund Manager and KMG Capital Markets' CEO, created D-CORE to become the first provider of high-quality, institutional-level research in the crypto/blockchain market. He heads D-CORE's operations from Limassol, Cyprus.
Carlos Cano is D-CORE's Creative Lead and host of the Blockchain People podcast on D-CORE's platforms. He is a digital nomad and is responsible for all the creative materials you see from D-CORE. You can find him on Twitter.
