It’s no longer news that the world’s payment juggernaut, Paypal is allowing its users buy and sell cryptos
What is news now is that PayPal has linked up with the crypto exchange and stablecoin issuer, Paxos Trust Company to allow its millions of users in the US to purchase, sell and store Ethereum (ETH), Bitcoin Cash (BCH) Bitcoin (BTC), and Litecoin (LTC).
What this means: In a recent interview on Unchained Podcast, Paxos CEO and co-founder Charles Cascarilla disclosed reasons why for now the payment juggernaut, PayPal can only trade with such cryptos.
“That’s what [PayPal was] looking for and that’s what we had. We actually have the authority to be able to custody and trade additional tokens. We have Pax Gold, which is one of our tokens. We have Pax dollars. So there are other products that we have that weren’t included in the crypto brokers launch. But in terms of pure cryptocurrencies, those are the four that we have that we’re listing on our exchange and really providing custody for.
“For instance, Bitcoin, Bitcoin Cash, as a result, Litecoin, which are very similar, and Ethereum have essentially been grandfathered in by the SEC, Bitcoin explicitly and Ethereum explicitly. And once you start getting away from these top four, there are always a few questions around them. Not just for us, but for the industry in general. So that’s something we need to be sensitive about.”
Recall Nairametrics, a few days ago reported that PayPal is now allowing U.S residents to purchase, sell, and keep cryptos. Although the crypto service PayPal was set to launch in early 2021, however, based on high demand and sign-ups to such service, PayPal has decided to allow eligible U.S. PayPal clients to buy, sell and hold cryptos.
A PayPal spokesperson stated, “Due to the initial demand from our customers, we’ve also increased our weekly cryptocurrency purchase limit from $10K/week to $20K/week.”