PayPal expands operations to allow users to send Bitcoin to crypto exchanges

  • PayPal and its subsidiary Venmo would allow customers to withdraw their crypto holdings to third-party platforms soon.
  • The new feature would allow users to send Bitcoin not only to each other but to crypto exchanges as well.
  • The payment company believes this move would bring more value to digital currencies.

PayPal announced that it would soon be making cryptocurrency withdrawals available to its users for third-party wallets.

PayPal crypto operations are to be expanded significantly

At CoinDesk’s Consensus 2021 conference, Jose Fernandez da Ponte, vice president of global business development at PayPal, announced that users will soon be able to move the digital assets to external wallets.

The payment company allowed users to purchase cryptocurrency using fiat in October 2019. In March of this year, PayPal began allowing users to pay with digital currency. PayPal took over the crypto custodian company Curv and last month even introduced trading in digital assets through its subsidiary Venmo.

After criticizing the fact that the services gave users little control over their crypto holdings, PayPal decided to add a new feature. At the conference, Fernandez da Ponte said:

We want to make it as open as possible and give our consumers a choice. We want you to be able to take the crypto you have acquired and bring it to the destination of your choice.

This means that PayPal and Venmo users can send cryptocurrencies like Bitcoin to others and services, including crypto exchanges. He added that the company will roll out new developments on average every two months, but it is still unclear when the new features will be available.

PayPal is relying on Paxos to run its crypto operations, suggesting that the blockchain infrastructure provider may also handle integration with third-party wallets.

As the payments company has held discussions with central bankers around the world, Fernandez da Ponte highlighted two priorities central banks could potentially have, including financial stability and universal access. Given that there are many ways to achieve stability with digital assets, he added that central bank digital currencies (CBDCs) could coexist alongside stable coins. He explained:

Sometimes we position the debate as CBDCs versus stablecoins, but it’s a fake debate. There is no compromise. We believe they will coexist.

While PayPal is reportedly developing a stable coin, the vice president said, “This is way too early.”

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