Users can deposit and withdraw cryptocurrencies to and from their own PayPal wallets, including exchanges and hardware wallets
What PayPal Users Will be Able to Do
As of today, the native transfer of cryptocurrency between wallets and exchanges supported by PayPal and those not supported by company is now supported. Since company first made it possible to buy cryptocurrencies using platform, customers have put this function among the most desired additions over and again, making it one of the most frequently requested updates.
This new functionality, which is available immediately to a limited number of users1 in the United States and will be rolled out to all eligible users in the United States in the coming weeks, enables customers to do the following:
- You can use PayPal to send and receive supported cryptocurrencies
- Transfer cryptocurrency from your PayPal account to an external cryptocurrency address, including exchanges or a hardware wallet
- You may use PayPal to send cryptocurrency to loved ones in a matter of seconds, and there are no fees or costs incurred by the receiving party for using the service
Giving clients of PayPal the ability to move their cryptocurrencies (Bitcoin, Ethereum, Bitcoin Cash, or Litecoin), outside of, into, and within platform reflects the ongoing growth of best-in-class platform and enables consumers to participate with the larger crypto ecosystem. Customers who move their cryptocurrency holdings into company have the ability to increase the value of their cryptocurrency holdings by using checkout with crypto offering at a multitude of different retailers.
The New York Department of Financial Services (NYDFS) has also granted PayPal a full Bitlicense, making it the first organization to convert a conditional Bitlicense into a full Bitlicense, demonstrating commitment to sustainable innovation and continuing to expand the accessibility and utility of digital currencies while adhering to all regulatory guidelines and best practices. Adding the capacity to transmit, receive, and move cryptocurrency is another step toward a more accessible and efficient financial system.
What Representatives Say
Jose Fernandez da Ponte, the company’s SVP of blockchain and crypto, said: “The whole reason we’re in crypto is because we believe a substantial portion of commerce is going to move to digital currencies.”
He added: “There’s a lot of discussion about crypto winter, but it’s important to see beyond that. The macro trend [of broad crypto adoption] is undisturbed.”
PayPal SVP of Regulatory and Customer Compliance Andrea Donkor, told CoinDesk: “The future of safe and responsible innovation in crypto requires strong partnership between regulators and industry. The NYDFS’ leadership has been critical in enabling PayPal to continue to responsibly provide greater inclusion and access to our customers.”
NYDFS Superintendent Adrienne Harris, said: “My agency is committed to keeping New York at the center of responsible technological innovation and forward-looking regulation. The conditional virtual currency license allows businesses to have well-regulated access to the New York marketplace through partnerships with licensed firms, ensuring that New Yorkers have access to a wide variety of virtual currency products with appropriate consumer protections. With PayPal’s conversion to a BitLicense, the conditional license is now a proven framework for licensure.”
The Road to Crypto
PayPal launched a crypto trading tool in October 2020, but consumers had limited alternatives at the time other than swapping various coins. These limits drew a lot of criticism.
In March 2021, the firm allowed consumers to spend their Bitcoin with PayPal-accepting retailers. Commercial payments, on the other hand, did not include a means for customers to withdraw monies to a personal wallet. Personal cryptocurrency withdrawals were expected to happen eventually. The function has been in the works for at least a year, with PayPal officials talking about it since May 2021.
Other retail financial businesses have followed a similar step-by-step approach to embracing cryptocurrencies. Regardless of the fact that it has allowed crypto trading since 2018, Robinhood did not start allowing Bitcoin withdrawals until this year.
