Crypto just received a golden opportunity to join the mainstream in the year 2021. PayPal recently confirmed this Wednesday that they are joining the market of cryptocurrency soon. This leading payment company with around 346 million users from different parts of the world vowed to use cryptocurrency to capitalize on obtaining the 26 million merchant bases from around the world.
Paypal claimed the different features of the application would be available to general users soon, while it’s already live for some.No type of cryptocurrencies (only bitcoin, bitcoin cash, ether, and litecoin are currently available) can be taken in or out of the account unless sold.
It was rumored in June that PayPal might take up crypto. This idea was under development for over a year, things shaped up due to the rise of the need for online payment due to the COVID-19 pandemic. The services will be available to the customers at the beginning of 2021, cryptocurrency will be easily converted to flat currency without any hassles.
Customer Keys Restricted
There are certain limitations Paypal has incorporated in the system that is tying down the customers in certain manners. One of such limitations is, not allowing the private customers’ keys access. However, PayPal claims this system has its own benefits. Basically, a customer misplacing his private key could fall into unnecessary troubles. Whereas in no way the user will be responsible for transactions of the cryptocurrency that is unauthorized. Hence, users are unable to pass around their crypto money to any account.
Alongside this, there are also some real-world restrictions in the US. 49 out of 50 US states have launched coverage except for Hawaii. Also, there is a minimum of $10,000 buying amount per week and up to $50,000 limit yearly. So, basically, PayPal is keeping a strict grip on how the customers deal with BTC, BCH, LTC, and ETH by retaining its control over the keys.
Conditional BitLicense to PayPal
New York State Department of Financial Services (DFS) granted PayPal the BitLicense for its Paxos Trust Company partnership, this Wednesday. This will allow customers to exchange crypto money in the market, only in US dollars.
This conditional BitLicense, DFS claims will, encourage financial service groups, but will also safeguard the interests of the consumers in the New York’s marketplace of virtual currency. Currently, Paxos, after receiving the approval from DFS, will be able to provide PayPal’s 346 million customer base to deal with the virtual currency market without trouble in New York. DFS has granted its approval to 26 companies like PayPal since 2015.