From a letter to this public body it has now become known that PayPal is working on crypto payment functions.
PayPal Holdings Inc (NASDAQ: PYPL) has now confirmed its work on crypto payment functions. This can be seen in a letter from the payment giant to the European Union. The document was originally delivered in March this year and is also available on the European Commission's website. This letter was a response to the EU consultation process on the creation of a framework for cryptocurrencies and digital assets.
In the letter, PayPal reaffirmed that the payment giant's mission is to "democratise access to financial services and the digital economy worldwide".
PayPal provides crypto functions
PayPal has a user base of more than 300 million people. The payment giant pointed out that it is a company focused on compliance. Its licence to provide banking and payment services in Luxembourg is one such example.
The company also spoke about its compliance with rules and regulations set by governments.
As far as the EU framework for the crypto area is concerned, PayPal was direct. Alluding to the fact that the crypto space has grown in recent years, the payment giants said:
The crypto industry has experienced considerable growth in recent years and has become the subject of extensive discussion and debate, ranging from the benefits of decentralisation to the potential impact of global stablecoins and central bank digital currencies.
PayPal therefore continuously monitors and evaluates global developments in crypto and blockchain or distributed ledger technologies. Of particular interest to us is the question of how these technologies and crypto assets can be used to achieve greater financial integration and help reduce or eliminate some of the negative points that exist in financial services today.
We are also very interested in how these technologies can be used to promote transparency and improve compliance efforts.
Extract from PayPal's letter to the EU
PayPal also indicated that it would support a "harmonised approach through EU markets" for licensing or authorisation requirements.
Libra Association had problems
Last year, the payment service provider had joined Facebook's attempt to enter the crypto-room via the Libra Association. However, Paypal was the first organization to leave the association in October last year.
One of the main concerns of many people was the alleged attempt by Libra to cartelise the crypto world. The exclusion of China from the Libra Association was also not well received.
As a result, China was motivated to do its own thing and is well on the way to introducing its Central Bank Digital Currency (CBDC).
The official position of PayPal has been unclear. It now shows that the development of business solutions in cryptocurrencies is underway.
Previously, the sale of cryptocurrencies had been done in collaboration with various companies. For example Coinbase had offered the purchase of cryptocurrencies with PayPal as a working solution. Now it seems that the provider of these payment services wants to come into play himself.
However, the exact schedule and the detailed implementation has not yet been published, so it remains exciting. For the entire crypto sector this news is of course a very positive message, which could bring enormous momentum to the market.
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Cryptocurrency & Blockchain
A cryptocurrency is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets.