PayPal launches crypto service in the UK. On Monday, the online payment giant asserted that it would allow British users to purchase, hold, and sell cryptocurrencies that will begin from this week. This event marks the first international extension of the crypto product of PayPal which was primarily launched in the US in October 2020. According to Jose Fernandez da Ponte, general manager for blockchain, digital currencies, and crypto of PayPal,
“It has been doing really well in the U.S. We expect it’s going to do well in the U.K.”
The crypto feature of PayPal allows the users to buy or sell Bitcoin Cash, Bitcoin, Ethereum, etc for as little as £1. The users can also track the prices of crypto in real time, and also find educational content on the crypto market.
Similar to the U.S. version of the product, PayPal is depending on Paxos, a New York controlled crypto company, to allow digital currency buying and selling in the U.K. PayPal launches crypto service and they have actively engaged with the relevant U.K controllers in the launch of this service. The PayPal cryptocurrency fees have not yet been declared, but it can be expected that the users will have to pay a certain amount to hold their crypto with PayPal. There are no PayPal crypto coins as such but the PayPal cryptocurrency list includes cryptos like Ethereum, Bitcoin, Bitcoin Cash, etc.
PayPal Launches Crypto Service And Its Growing Adoption
The crypto service that PayPal offers is similar to one of the U.K’s fintech firms, Revolut. Similar to the case with Revolut, the users of PayPal cannot navigate their crypto holdings beyond the PayPal crypto wallet. So if you are wondering how to send Bitcoin from PayPal to another wallet, then as of now this is not possible. Even though Revolut has begun a testing feature that allows its users to withdraw BTC to their own personal wallet.
According to PayPal, its invasion into the crypto space aims at making people’s participation in the crypto space easier. According to da Ponte,
“The tokens and coins have been around for a while but you had to be a relatively sophisticated user to be able to access that. Having that on a platform like ours makes a really good entry point.”
The processor of the payment is among the many large companies taking a step into the most volatile space of digital currencies. Despite the prevailing issue of price fluctuations, security of the customer, and potential laundering of money in the crypto space, major entities like Tesla, Mastercard, and Facebook have been trying to print their steps into the crypto space lately.
World’s biggest digital currency, Bitcoin, hit an all time high of close to $65,000 in April before falling to as low as $30,000 in July as a crackdown was extended by the Chinese regulators on the crypto market. Since then, Bitcoin has now recovered to a price of more than $50,000.
After PayPal launches crypto, while it started trading in crypto, it is expected that in the long run, it will take a great leap for the e-commerce industry. At the beginning of 2021, PayPal enabled its U.S consumers to use digital currency to pay millions of its digital merchants, through PayPal crypto merchant payments globally. It has also increased crypto purchasing and selling to Venmo, which is its famous mobile wallet. According to da Ponte,
“We definitely have ambitions to continue to expand the product range in the U.S., the U.K., and other markets. We are very deliberate about starting with initial functionality, and then we’ll see where the market is going to take us. Different markets have different appetites for products.”
After PayPal launches crypto service in the U.K and this also increases the tension of the regulators about the increase of digital currencies. The FCA in June banned the British subsidiary of Binance, which is the largest digital currency exchange in the world, referring to a failure to meet the requirements of money laundering. da Ponte says,
“It makes sense that, as there is increased consumer interest and increased volume, the regulators are putting more attention into this space and taking strong regulatory relations.”
PayPal launches crypto service, and in the meantime, the central banks are evaluating the potential circulation of their own cryptocurrency, as the use of cash in several countries declined rapidly. In April, the U.K Treasury, and the Bank of England asserted that they would explore the potential release of a digital version of the British pound that has been named as “Britcoin” by the UK space.