PayPal, the renowned payments platform, has introduced a new feature, named “Cryptocurrencies Hub.” This feature empowers users to manage and transact with Bitcoin (BTC) and other digital currencies within their PayPal accounts.
Through this hub, users won’t just be able to maintain a cryptocurrency balance; they can also perform transactions using these assets. Within the Cryptocurrencies Hub, capabilities include purchasing, selling, receiving, and transferring digital currencies.
Additionally, users can use the proceeds from their cryptocurrency sales to make purchases via PayPal. The hub even supports conversions between PYUSD, PayPal’s own stablecoin, and other digital currencies.
While the Cryptocurrencies Hub allows users to view a balance, it’s crucial to understand that they won’t actually own the digital assets in a conventional sense.
Custodial and transaction services for these cryptocurrencies, including trading and transfers, will be overseen by Paxos or other designated service providers.
PayPal states, “To access and use the Cryptocurrencies Hub, users must have both a personal PayPal account and a Balance Account in good standing, coupled with successful verification of the provided identification details. The Cryptocurrencies Hub operates as an extension of the Balance Account and can only be accessed via a personal PayPal account.”
Additionally, to use this feature, users are obligated to supply essential identification details. This encompasses their full name, residential address, birth date, and taxpayer identification number.
However, residents of Hawaii are currently excluded from accessing the Cryptocurrencies Hub.
PayPal Has Linked Cryptocurrencies Hub to Personal Accounts
PayPal has seamlessly integrated the Cryptocurrencies Hub with users’ personal accounts. This means that the login details for individual accounts will also grant access to the Cryptocurrencies Hub.
Before using the Cryptocurrencies Hub for the first time, an identity verification process is mandatory for users.
PayPal mentioned, “In specific situations, while using your Cryptocurrencies Hub, we might ask for a facial photograph or other biometric data to confirm your identity.”
Furthermore, the company emphasized that users bear the responsibility of ensuring their account credentials, passwords, and other identification details remain secure and confidential.
For optimal account management, PayPal advises users to consistently update personal details, including their residential and mailing addresses as well as email, within their PayPal profiles.
PayPal’s unveiling of the Cryptocurrencies Hub follows closely on the heels of the company’s announcement about the imminent launch of its PYUSD stablecoin.
This stablecoin, tied to the US dollar, is the brainchild of Paxos, a notable blockchain infrastructure company that previously issued the Binance USD (BUSD) stablecoin.
For those holding PYUSD, they’ll have the flexibility to exchange it for US dollars within the PayPal platform. Moreover, they can convert it to other cryptocurrencies that PayPal supports, such as Bitcoin, Bitcoin Cash (BCH), Ethereum (ETH), and Litecoin (LTC).
However, the company’s move hasn’t been without criticism. Democratic Congresswoman Maxine Waters (D-CA) expressed her reservations about PayPal’s stablecoin debut. She believes that the company should have awaited a comprehensive federal regulatory framework before launching.
Expressing her concerns, Waters remarked, “The decision by PayPal to roll out its stablecoin without an established federal regulatory landscape deeply worries me.”