PayPal finally enables external crypto transfers

PayPal finally enables external crypto transfers

PayPal finally enables external crypto transfers

PayPal is finally enabling its customers to use decentralized cryptocurrency in the way it was always intended, with the option to transfer crypto freely to and from external wallets.

The move was confirmed by the company’s SVP of blockchain and crypto, Jose Fernandez da Ponte, in a PayPal Newsroom announcement on Tuesday. Fernandez da Ponte acknowledged that the feature was consistently one of the most requested by users since PayPal first started to offer cryptocurrency on its platform in October 2020.

The option is being enabled immediately for select US service users - with a view towards rolling it out to all US users over the coming weeks.

A significant development

Just as its initial decision to delve into crypto was a positive move for cryptocurrency adoption, adding this feature is equally significant. With 350 million users worldwide, there are more PayPal users than there are account holders on crypto exchanges. While the crypto community welcomed PayPal’s initial entry into crypto, it was always frustrating to see it try to put a walled garden around decentralized cryptocurrencies - which only come into their own when they can be freely transferred.

PayPal’s announcement comes just as a bi-partisan crypto regulation bill has been proposed in the US. One of the hopes with PayPal extending its offering to crypto was that it would enable online shoppers to use crypto.

The US crypto bill itself seeks to remove yet another hurdle by allowing an exemption from gross income for gains of up to $200 on cryptocurrency used to buy goods and services. When combined, all of these developments together will lead to further adoption of crypto as a means of payment.

Embracing crypto

PayPal is showing all the signs of engaging positively with crypto. Earlier this year it emerged that the company is exploring the possibility of launching its own stablecoin.

The company is one of a number of non-crypto native platforms that are slowly opening up to the non-custodial aspect of cryptocurrency. Neobank Revolut recently confirmed that it too is looking to facilitate deposits and withdrawals involving decentralized wallets, moving away from a walled garden approach. Trading and investing platform Robinhood has supported crypto since 2018. However, it did not facilitate the direct withdrawal of crypto initially. Having released a custodial crypto wallet in April, it followed up last month with the announcement of a non-custodial crypto wallet which will be released later in the year.

This content is for informational purposes only and is not investment advice. You should consult a qualified licensed advisor before engaging in any transaction.

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