Tuesday, November 2nd, 2021
PayPal is the latest online payments provider that has launched into the unregulated world of cryptocurrency in the U.K.
The U.S.- based online payments giant announced that it will allow British customers to buy, hold, and sell digital currencies.
This is the first expansion of Paypal’s cryptocurrency product on an international scale. Its preliminary launch in the U.S. took place in October of last year.
Making Cryptocurrency More Accessible
There is no doubt that this rollout could stimulate an increase in cryptocurrency adoption, making it even more mainstream on a global scale. There are also hopes that its network will be equipped to adopt the newest digital currencies that could be developed by central banks and corporations down the road.
Customers will have the choice of using four types of cryptocurrency including Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.
The PayPal platform will feature a new crypto tab that will display real-time currency prices as well as a knowledge base filled with educational and helpful information about cryptocurrencies and their potential risk.
Despite its promotion by celebrities and highly-profiled CEOs, cryptocurrencies are still shrouded in mystery. What is known and is a barrier to mass adoption is the fact that there is no regulation. Then there are the erratic value fluctuations.
Staunch critics have voiced concerns over the anonymity of its users in their transactions. They argue that these digital currencies are actually being used to conceal illegal activities.
Jose Fernandez da Ponte, the Vice President and General Manager for blockchain, crypto, and digital currencies at PayPal said:
“The pandemic has accelerated digital change and innovation across all aspects of our lives, including the digitization of money and greater consumer adoption of digital financial services.
Our global reach, digital payments expertise, and knowledge of consumers and businesses, combined with rigorous security and compliance controls provide us the unique opportunity, and the responsibility, to help people in the UK to explore cryptocurrency.
We are committed to continuing working closely with regulators in the UK, and around the world, to offer our support and meaningfully contribute to shaping the role digital currencies will play in the future of global finance and commerce.”
How It Works
For the uninitiated, customers can explore within the safe and trustworthy confines of the PayPal ecosystem. Customers can begin their foray into the digital currency space by purchasing as little as £1 of cryptocurrency via PayPal.
To begin purchasing cryptocurrency through PayPal, eligible customers simply log in to their PayPal account either through the website or the mobile app. They will then find the new crypto tab and see the four cryptocurrencies currently available to view the latest pricing and trends.
Customers can then choose either “pre-determined purchase amounts” or they can key in their own purchase amount. They would then follow the prompts to purchase the cryptocurrencies of their choosing. Customers can finance their PayPal account for that purchase by using their debit card or bank account.
If customers would rather sell cryptocurrency, the funds will be available instantly to spend within their PayPal account. To hold cryptocurrencies in their PayPal account, there are no fees. For certain cryptocurrencies, there are transaction and currency conversion fees for buying and selling.
PayPal has moved full-steam ahead into the world of cryptocurrency as it has also partnered with licensed and regulated cryptocurrency platforms, as well as with central banks from around the globe.
In just the past five years, PayPal has invested its resources in its very own internal blockchain research team to investigate the next generation of the infrastructures of digital financial services and the latest innovations in digital commerce.
With PayPal as a trusted brand, there is no doubt that some substantial headway in cryptocurrency adoption in the U.K. will be possible.