PayPal Will Allow Customers To Withdraw Crypto
Global payments giant PayPal plans to let users withdraw cryptocurrency to third-party wallets, its blockchain lead said.
Speaking Wednesday at CoinDesk’s Consensus 2021 conference, Jose Fernandez da Ponte told moderator Jeff John Roberts that a withdrawal function is in the works. At present, PayPal does not let users move cryptocurrency holdings off-platform, though it has let customers buy bitcoin (BTC) and other cryptocurrencies since October 2020.
“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,” da Ponte said. “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.”
The company ships new developments every two months on average, he said, though it’s unclear when the withdrawal functionality is coming.
Rumors on PayPalCoin
On a rumor that PayPal plans to launch its own stablecoin, da Ponte was more downbeat. “This is way too early,” he said.
Roberts, executive editor of Decrypt, a news site, probed da Ponte about central bank digital currencies (CBDCs), since the PayPal vice president said he has met with central bankers around the world.
“It absolutely makes sense that central banks will issue their own tokens,” he said. But he did not accept the common view that only one out of stablecoins or CBDCs would become dominant.
“Sometimes we position the debate as CBDCs versus stablecoins, but it’s a bit of a fake debate. There is no trade-off. We think they will co-exist.”
In da Ponte’s experience, central bankers have two priorities: financial stability and universal access. He could see plenty of ways to achieve stability with digital currencies, not only by backing a stablecoin with fiat currency but potentially by backing one with a CBDC.
And digital currencies could help expand access to the financial system, he said. He pointed out that one county in California, near where he lives, is a “banking desert”: there are no physical branches. That might not matter in a world where CBDCs have been rolled out across the country, he suggested.
But da Ponte was clear that there is a lot more work to be done. “On the subject of CBDCs, there are a lot of Powerpoints written, but not a lot of code written.”
PayPal A Natural Way to Distribute CBDCs
He said he sees financial institutions like PayPal as the natural way to distribute CBDCs to the public when the time comes. The potential difficulty of this challenge was shown during the pandemic, when some people had to receive stimulus checks in the mail, requiring them to travel to a physical bank to cash them. “I think we can do better than that,” said da Ponte.
Digital currencies are not quite ready to offer serious payment cost reductions to people all over the world, in da Ponte’s view. His estimate of global adoption at 2% is simply not high enough. “But 10% adoption is where it gets really interesting, when it gets beyond the early adopters.”
PayPal opened trading on select cryptocurrencies to U.S. customers in November and began allowing users to pay for goods and services with crypto in March.
The company reported better-than-expected results for the first quarter, with adjusted earnings of $1.22 billion, beating the average estimate from analysts of $1.01 billion. It was the second set of results to include PayPal’s crypto buying and selling service. The company has said that customers who purchased crypto through the platform have been logging into PayPal twice as often as they were before they could buy crypto.
Source: PayPal Will Allow Customers To Withdraw Crypto – Fintechs.fi
The REAL BTC threat is that it BYPASSES THE banking system ! It is not that the banks will collapse and people will withdraw their money from the banks – and take a red eye to BTC ! That also,is not likely in the short term.
The threat is that trade and commerce will BYPASS THE BANKING SYSTEM !
If A sells to B in POS store or online or by a wire transfer – the money goes to his bank – irrespective of FX chosen.Cash can be hoarded,of course, but up to a limit
Once the money hits the banks – then the trail is set ! EVEN IF THE PAYER IS NOT TRACEABLE – the recipient is screwed .Besides FATF – he comes in the Direct and Indirect tax net ! It is this tax net which feeds the corrupt government and politicians.
So in a trade through BTC or other CrC (Crypto Coin),the Govtt loses the entire revenue on that supply chain and value chain – FOREVER – and that will catalyse more and more of such trades.In fact it will start a BTC supply chain – with its tech platforms – wherein manufacturing upto a limit – will NOT PAY ANY TAXES TO the government.
The advantage to the buyer of the goods is that ,he get the items free of VAT or taxes – so it is 10-20 % cheaper,and he has anonymity of payment (if not of purchase)
AND THEN,THIS WILL BANKRUPT THE STATE AND THE BANKS (AS ALL THIS LIQUIDITY WILL EXIT THE BANKS AND WILL ALSO DESTROY BANK SOLVENCY AND THE MONETARY POLICY OF THE FED -AS INTEREST RATES AND CREDIT POLICY,WILL NO LONGER BE A LEVER FOR ANY ECONOMIC DECISIONS AND OUTCOMES !
That is the EXISTENTIAL THREAT TO THE WORLD AND ESPECIALLY TO THE «USA».
Take the case for India – the Bad assets are USD 400 Billion USD and COVID has aided the banks in hiding more !
It is CERTAIN THAT THE GOI WILL DEMONETISE BANK DEPOSITS ACROSS THE BOARD TO OFFSET THE LOAN LOSSES !
Y WILL PEOPLE PUT MONEY IN BANKS ? The same is the story in most parts of the world.
BTC supply comes from LOW COST POWER NATIONS
BTC demand comes from INEVITABLE DEMAND WHICH IS EXPECTED from BUSTED NATIONS LIKE INDIA – AND SPECUALTORS IN THE US/EU PUNTING ON IT
BTC THREAT COMES FROM THE USA and EU – the existential threat ! BTC is not a threat to PRC !
AND THAT IS WHAT MAKES IT A PERFECT INVESTMENT BET ! dindooohindoo
COULD IT BE THAT THE US AND EU ARE USING BTC TO TRAP INVESTORS,INFLATE THE BALLOON AND THEN BLOW IT UP ? THAT WILL WIPE OUT THE SPECULATIVE LIQUIDITY IN THE ECONOMIES – AND THE WEST CAN DO A FALSE FLAG – LINK THE MONEY TO CRYPTOS – AND THEN USE THAT TO BLOW IT UP !