PayPal’s VP of blockchain and cryptocurrencies said that the platform would soon let users withdraw crypto from the platform to external wallets.
PayPal revealed on May 26 that it would begin allowing users to withdraw cryptocurrencies from their platform into third party wallets. Previously, users could only purchase and sell crypto on the platform, which was a major pain point for some users.
Jose Fernandez da Ponte, Vice President of blockchain and cryptocurrencies at PayPal, said at a crypto conference that making the whole process open was paramount,
“We want to make it as open as possible, and we want to give choice to our consumers, something that will let them pay in any way they want to pay. They want to bring their crypto to us, so they can use it in commerce, and we want them to be able to take the crypto they acquired with us and take it to the destination of their choice.”
Ponte did not offer a date on when the feature would be released. If past changes are anything to go by, it should take a few months. It was roughly the same time frame between PayPal’s announcement for crypto support and the actual launch.
Ponte also addressed questions about a potential stablecoin launch by PayPal, saying that it was far too early to consider the matter. However, he did mention that stablecoins and CBDCs would co-exist.
Stablecoins have been a point of contention among regulators and incumbent financial institutions. Some regulators have worried that it would impinge on sovereign authority, while others have said that they can be regulated. Facebook’s Diem project has been at the center of these discussions.
PayPal’s decision could have a big impact on crypto
With users now being able to move assets off of the platform, it could spur another wave of purchases. Certainly, users will be happy to keep their digital assets in a safer storage solution.
It’s unlikely that a majority of PayPal’s users are the tech-savvy kind who have previously purchased cryptocurrencies. This group of individuals are already well-versed in crypto and have several alternatives that provide advantages in several ways.
Rather, PayPal’s crypto purchases are likely those who have been on the fence but have been confused as to how to get started in investing. The platform grants an accessible and convenient way to purchase the asset, with these novice users not having to worry about the technicalities of exchanges.