Paypal users will now be able to trade owned Bitcoins with third party applications.
Venmo users will be able to send Bitcoins to third party services
Last Wednesday (26), PayPal announced that it is ready to expand its global presence in the cryptocurrency market. The company intends not only to allow the buying and selling of Bitcoin among users of Venmo, its mobile payments application, but also to transfer coins to users of third-party services.
A few days ago, the payment network had been accused of trading “fake” bitcoins, as no one was able to transfer cryptocurrencies out of the company’s ecosystem. However, PayPal’s head of blockchain and crypto assets technology, Jose Fernández da Ponte, announced that users of the platform and Venmo will finally be able to send Bitcoin to platforms such as the Coinbase market and third-party crypto wallets.
In addition, a senior PayPal manager added that the company is interested in attracting custom crypto assets so that people can use them in commerce, as well as sending them to other wallet owners of their choice.
To date, the dates for the introduction of the new service and how blockchain transactions will be organized when trading cryptocurrencies have not yet been released.
PayPal and the cryptocurrency market
PayPal made its debut in the cryptocurrency market in April last year. The debut was made through Venmo.
The app, in turn, allowed its more than 70 million users to trade Bitcoin, Ethereum, Litecoin and Bitcoin Cash internally.
With the announcement of the service “Crypto on Venmo“, the application was launched with the premise that users in the United States could invest in the cryptocurrency market starting from USD $ 1. In addition, these users could watch videos and tutorials about digital assets in the application itself.
In the video below, you can check in more detail about the Paypal service “Crypto on Venmo”:
Rumors about PayPal and crypto
PayPal’s own payment infrastructure
At the moment, PayPal has a partnership with Paxos, a blockchain provider, to carry out transactions with bitcoins.
However, sources report that it is possible for the company to build its own payment infrastructure, as on March 8, PayPal announced that it had completed the acquisition of Curv, a crypto-security and multipart computing (MPC) startup.
PayPal’s stablecoin
According to media reports, PayPal CEO Dan Schulman began to see cryptocurrencies and blockchain technology in general as one of the main parts of his business. The executive acknowledged that these technologies have a high potential to reduce the cost of remittances, especially in developing countries. In addition, its use provides improved access to financial services in general.
Reports say the company is also working on creating a “stablecoin” – encryption whose value is tied to the price of one of the real-world currencies. Fernández da Ponte did not want to go into details, but he also did not refute the rumors about the same.
However, sources familiar with the matter revealed that PayPal has contacted some developers of industry-standard stablecoin protocols. Such statement suggests that the payments giant may want to work with an outside company.
Sources reveal that one of the organizations that contacted PayPal to talk about developing a stablecoin is Ava Labs, the team behind the Avalanche blockchain. However, it is not yet known what other protocols are involved in the discussion.
In response to these allegations, a PayPal spokesman stated that “the company continues to explore the potential of cryptocurrencies, financial and digital services infrastructure and how we can help improve digital commerce as a trusted partner in the industry.”
“As a global company, working with regulators and industry partners around the world to shape the next generation of financial systems, the company is frequently talking about technologies to enable these goals. However, rumors and speculation do not foresee the company’s future plans ”, explained the spokesman.
