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Global payments giant PayPal plans to let users withdraw cryptocurrency to third-party wallets

Based on information revealed from CoinDesk’s Consensus 2021 conference, global payments giant PayPal appears to be planning to add support for crypto withdrawals to third-party wallets.

PayPal will soon let their customers withdraw cryptocurrency

Sharing with moderator Jeff John Roberts, vice president, and general manager of blockchain, cryptocurrency, and digital currency at PayPal, Jose Fernandez da Ponte said the withdrawal function is live. Currently, PayPal does not allow users to transfer crypto holdings off the platform, although it has been allowing customers to buy Bitcoin and other cryptocurrencies since October 2020.

Fernandez da Ponte shared:

“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. 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.”

At the moment, it is not clear when the withdrawal function will be launched. The company initially launched its crypto offering in October 2019. PayPal is also in the “very early” stage of launching its own stablecoin.

PayPalCoin?

In the face of rumors that PayPal plans to launch its own stablecoin, da Ponte was more disappointed:

“This is way too early.”

The cause of the rumor is that the PayPal vice president has been constantly meeting with central bankers around the world. And rumor has it that PayPal is eager to learn about central bank digital currencies (CBDCs).

He said:

“It absolutely makes sense that central banks will issue their own tokens. But I 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.”

He said he has always considered financial institutions like PayPal as the natural way to distribute CBDCs to the public when the time is right. 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.

In da Ponte’s view, digital currencies are not ready to reduce payment costs which is a big problem for people all over the world. His estimate of the global adoption rate at 2% is simply not high enough.

PayPal opened select crypto exchanges to US 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 median estimate from analysts of $1.01 billion. This is the second set of results covering PayPal’s crypto buying and selling service. The company has said that customers who purchase crypto through the platform log into PayPal twice as often as before they were able to purchase crypto.

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