The payment service provider PayPal has presented its quarterly figures. The crypto business is doing well and should be expanded even further. But first, the crypto trading function should reach the UK.
In 2020, PayPal was partly responsible for ensuring that the Bitcoin course was able to quickly free itself from the Covid-induced turmoil in 2020. When the payment service provider enabled its US user base to buy and sell Bitcoin and other cryptocurrencies, the BTC and Co. not only gave a new boost to legitimacy, but also opened up access to the new asset class for millions of potential traders. At least indirectly: Because depositing and withdrawing BTC, ETH, LTC and BCH is not possible. In April 2021, the PayPal subsidiary Venmo also ventured into the crypto sector.
PayPal launches bitcoin trading in the UK …
The PayPal app is about to undergo a major overhaul. In addition to a new user interface, the new app should above all offer a larger range of functions. It should become the “super app”, a concept that has so far been widespread, especially in Asia. Super Apps offer various cross-industry services under one digital roof – for example P2P payments, direct messages and restaurant bookings.
When it comes to crypto, PayPal has so far been anything but a great app. Users can only buy and sell cryptocurrencies. Withdrawals are not possible – an affront to the crypto ideal of decentralization. Will the planned super app give its users the opportunity to transfer crypto currencies to their own wallets? During the presentation of the quarterly results, PayPal CEO Dan Schulman gave a chat. After that, they are currently working on “transfers to wallets to third-party providers”. Schulman left it open whether these are exclusively custodial wallets (as the PayPal app currently represents), or whether Hodler will be master of their assets. What is certain, however, is that customers in Great Britain will soon have the opportunity to buy and sell cryptocurrencies.
CBDCs remain the focus
However, the PayPal CEO immediately tries to emphasize that the above points are not the main focus of PayPal’s crypto engagement. Schulman, on the other hand, focuses primarily on developments in the area of digital central bank currencies (CBDC). Schulmann thus reinforced its position from the presentation of the quarterly figures for Q4 2020.
n the meantime, you can find out how the CBDC ambitions of the ECB and Co. are currently in the regulatory ECHO on July 19.