Global payments giant PayPal will allow users to transfer crypto holdings to external wallets.
The US payment service provider PayPal continues its efforts on cryptocurrencies after entering this space seven months ago. The company announced yesterday that it plans to launch a crypto withdrawal feature. The latest step will offer users of the platform the opportunity to transfer their cryptocurrencies to third-party wallets.
During the 2021 CoinDesk Consensus, Jose Fernandez da Ponte, the vice president and general manager of the company’s Crypto & Digital Currencies division, confirmed that support for external wallets will be added. The payment company first opened its platform to cryptocurrencies in October last year, allowing customers to buy crypto assets directly. One criticism, however, was that the company allowed users to hold, but not remove, their assets from the platform.
PayPal intends to change this with the upcoming functionality, although no specific date has been given as to when the crypto withdrawal feature will be introduced. He hinted that this will be soon and said the company tends to introduce developments two months apart. However, history shows that PayPal will probably gradually launch the feature with a regional approach.
“We want to make this as open as possible, and we want to give our customers a choice, something that allows them to make payments in any way they wantsaid the PayPal manager. „You want to bring your cryptocurrency to us to be able to use it in trading and we want you to be able to take the cryptocurrency purchased from us and take it to the destination of your choice.“
PayPal’s move from supporting cryptocurrencies last year was a big plus for the crypto space. The decision to allow withdrawals of digital assets to other wallets will certainly contribute to the mainstream adoption of cryptocurrencies. Reports suggest that the company is considering launching its own stablecoin. When asked if this was the case, the managing director replied that it was still too early. He also addressed the digital currencies of central banks.
He explained that PayPal offers a convenient way to distribute digital currencies to the masses, as they are well suited to solve logistical problems that may arise. He downplayed any comparison between central bank-backed tokens and stablecoins.
„It makes perfect sense for central banks to issue their own tokens“he said. „Sometimes the debate is presented as CBDCs versus stablecoins, but this is a false debate. There is no conflict. We think that they will coexist.“
