PayPal to offer cryptocurrency support on its network

Joanna Estrada
October 22, 2020

The company also said it would allow its 26 million merchants use cryptocurrency for payments.

The company is introducing the ability to buy, hold and sell select cryptocurrencies, initially featuring Bitcoin, Ethereum, Bitcoin Cash and Litecoin, directly within the PayPal digital wallet.

PayPal appears to have gone one step further by announcing support for Bitcoin Cash, Litecoin and Ethereum. This functionality will go live for U.S. users "in the coming weeks". While the service has technically already been launched, it will become available to PayPal account holders in the U.S. only "in the coming weeks", according to the statement.

US accounts on its subsidiary app Venmo and PayPal customers in other countries will get a crack at using crypto in the first half of 2021. The payments company has tapped Paxos, which launched crypto brokerage this year, for these services.

Global digital payment giant PayPal might be moving into issuing its own cryptocurrency after officially entering the crypto industry, according to a major industry exec. In 2018, PayPal competitor and mobile payments provider Square had rolled out support for bitcoin through its Cash app, and earlier this month, Square said that it had bought $50 million worth of Bitcoin.

"On one hand, the service will be entirely custodial, meaning users will not have the key to their own coins, while on the other they intend to "provide account holders with educational content to help them understand the cryptocurrency ecosystem". Part of the reason is that Paypal hass received a conditional bitlicence from the New York State Department of Financial Services and will launch a service for users to be able to buy, hold and sell cryptocurrency.

"The shift to digital forms of currencies is inevitable", PayPal CEO Dan Schulman said in a statement.

Disclosure: The author of this text owns, or has recently owned, a number of cryptocurrencies, including BTC and ETH.

Other reports by Click Lancashire

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