PayPal Confirmed of Developing Crypto Capabilities
The payments giant PayPal has revealed that it is developing cryptocurrency capabilities with its new payment processing platform, PayPal Pay. In a post to the European Commission in March, PayPal said like it was monitoring the evolution of the crypto asset space and how “we are taking unilateral and tangible steps to further develop our capabilities in the area,” with the Libra stable coin project announced in June 2019. Besides withdrawing its support for the Libra stable coin project, PayPal is also a member of the Libra project as a “partner” of its own.
Its revelation is significant because PayPal is said to be offering crypto – buying and selling services to its 300 million users. The commission would like feedback for building an EU framework of crypto assets, and PayPal’s response to the commission is in line with the public consultation which opened in December 2019.
PayPal has said that it is supportive of such a framework, according to a statement from the company’s chief executive officer, Brian Armstrong.
The company said blockchain and cryptocurrencies could help achieve greater financial inclusion and reduce or eliminate pain points that exist in today’s financial services. As technology grows, we believe that thoughtful regulation that encourages innovation while providing clarity can help the industry grow and prosper, “PayPal said.
The company wants the Commission to establish rational definitions for various crypto activities to ensure adequate protection of consumers and investors. PayPal has also suggested that the commission put crypto activities under the jurisdiction of the European Commission’s Financial Stability and Regulation Authority (FRA).
The regulatory framework in Europe must strive to be “technology-neutral” to support innovation and competition in the fast-evolving space, PayPal said. According to its website, the company has a firm presence in Europe, providing banking and payment services in Luxembourg and the United States. The company serves customers and businesses in 31 European countries and represents 95 million merchants and consumers.
PayPal has been active in the crypto space since as early as 2014, with a $ 1.5 billion investment in Bitcoin and Ethereum, as well as a partnership with Coinbase and BitPay. Since then, the company has worked with three Bitcoin payment processors, including Coinbase, which allows merchants on its network to accept Bitcoin as a means of payment.
