Giant online global payments processor PayPal has confirmed it has plans of developing cryptocurrency-related capabilities. The firm has called for a crypto regulatory framework to protect its developers and users.
The revelation is in a letter to the European Commission, where it sought clarity on cryptocurrency-related activities. PayPal said it assessed the need for a European framework for crypto assets that would support the integration of payments and financial services. The letter reads:
“As such, PayPal is continuously monitoring and evaluating global developments in the crypto and blockchain/distributed ledger space. Of particular interest for us is how these technologies and crypto-assets can be utilized to achieve greater financial inclusion and help reduce/eliminate some of the pain points that exist today in financial services.”
Buy and Sell Cryptocurrency via PayPal
According to the letter, PayPal has a deep interest in the cryptocurrency technology. The firm says it crypto can promote transparency and compliance efforts and would be supportive of the European Commission’s attempts to regulate the industry.
There has been rumor that PayPal was integrating cryptocurrencies in its platform. A “well-placed industry source” revealed that the payment platform would allow new and existing users to buy and sell cryptocurrency via PayPal. The news took the crypto-community by storm, and there was a lot of excitement in the crypto-space. PayPal was a board member of Facebook’s Libra project that failed to take off. Regarding Libra, there was an unofficial statement that read:
“We made the decision to forgo further participation. We remain supportive of Libra’s aspirations and look forward to continued dialogue on ways to work together in the future.”
Create a Robust Regulatory Framework
The California-based online payment processor says the cryptocurrency industry has grown exponentially in the last few years. The company believes that the technology could eliminate the pain points existing in the financial industry if harnessed well.
The technology has continued to evolve, and as more people are accepting the idea of decentralized finance. PayPal is at a crossroad of sorts wondering whether to remain where it is or accept the Future. This caused PayPal to ask the EU to create a robust regulatory framework. The company stated:
“As these technologies continue to evolve, we believe thoughtful regulation that fosters innovation while promoting clarity can help the industry grow and thrive […] any regulatory framework in Europe should strive to be technology-neutral to support innovation and competition in this fast-evolving space.”
The money of the Future
The change of tone by PayPal tells the story of many erstwhile crypto critics who have shifted perspective regarding cryptocurrencies. Far from the “drug money” tag it held for some time, even Rich Dad Poor Dad Author Robert Kiyosaki tells investors Bitcoin is the money of the Future.