PayPal reveals that it is Developing Crypto Capabilities
Payments giant PayPal has revealed that it is developing cryptocurrency capabilities.
PayPal was a member of the Libra project for about four months before it withdrew in October 2019, along with other payment giants such as Mastercard and Visa.
PayPal’s revelation is significant since it is said to be in the works to offer crypto buying and selling services to its users. PayPal's response to the commission is part of a public consultation that opened in December 2019 — the commission wanted feedback on building an EU framework for crypto-assets.
PayPal said blockchain and crypto-assets could help achieve greater financial inclusion and help reduce/eliminate some of the pain points that exist today in financial industry.
The company wants the commission to set clear definitions of various crypto activities to ensure adequate consumer and investor protection. PayPal has also suggested the commission to put crypto-activities within the scope of applicable anti-money laundering rules.
The company has a license to provide banking and payments services in Luxembourg, and serves customers and businesses in 31 European jurisdictions, representing about 95 million merchants and consumers.
PayPal has always been active in the crypto space since as early as 2014. At the time, the company partnered with three bitcoin payment processors, including Coinbase, which allowed customers in its network to accept bitcoin as payment.