Alongside its recent announcement of a proprietary stablecoin, payments giant PayPal (NASDAQ: PYPL) introduced a cryptocurrency hub wherein users can hold and interact with Bitcoin.
Announced on Monday, the most recent update to the terms of conditions outline the requirements for individuals looking to use the platform for cryptocurrency transactions.
The hub enables users to both buy and sell cryptocurrencies. Additionally, it facilitates the option to use funds acquired from cryptocurrency sales to make payments via PayPal for various purchases.
A significant feature of the cryptocurrencies hub is its capability to facilitate conversions between PayPal’s proprietary stablecoin, PYUSD and a variety of other cryptocurrency assets. This functionality is likely to attract users who aim to broaden their holdings and explore diverse cryptocurrencies.
Not all PayPal account holders will have the opportunity to experience the new feature, however, as the company will determine access on an individual basis.
To initially qualify for the hub, a user must possess an active personal PayPal account and a balance in good standing. Additionally, PayPal will validate the necessary identification details, which includes the user’s name, residential address, date of birth and taxpayer identification number.
The company even raises the question of potential biometric data in the future to access the hub.
“For some uses of your Cryptocurrencies Hub, we may request that you provide a picture of your face or other biometric information for identity verification purposes. If required, we will offer you an alternative to providing biometric information,” according to the updated terms and conditions.
This is the Ethereum contract address for PayPal's stablecoin.
I can't believe i get to tweet that.
We've come so far. pic.twitter.com/S6kSqcV4ut
— RYAN SΞAN ADAMS – rsa.eth 🦄 (@RyanSAdams) August 7, 2023
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Read more: PayPal launches U.S. dollar-backed stablecoin
Participation has some restrictions based on geography and other factors
PayPal explains that the balance presented in users’ cryptocurrencies hub account reflects ownership of specific amounts of each listed crypto asset. It’s important to understand, however, that this balance doesn’t imply possession of the actual digital crypto assets within the cryptocurrencies hub.
Additionally, the global payment company points out that certain individuals may face restrictions based on their geographic regions and other determining factors.
The introduction of PayPal USD, the company’s recently released stablecoin which is backed by the US dollar, has elicited a range of responses within the cryptocurrency community. While some view it as a stride toward wider adoption of cryptocurrencies, others have expressed concerns regarding its potential impact on decentralization and individual asset control with some users showing concern about the company’s ability to freeze or even delete assets.
