The world’s largest payment processor, PayPal, has introduced a new tool that lets customers store and manage Bitcoin (BTC) and other cryptocurrencies in their accounts.
Users will be able to conduct transactions involving several cryptocurrencies thanks to the new feature, called Cryptocurrencies Hub, which also lets users save a balance in different cryptocurrencies.
PayPal users will be able to purchase, sell, receive, and send cryptocurrencies by using the Cryptocurrencies Hub.
Additionally, customers will have the choice to use the money received from the sale of cryptocurrencies to make PayPal transactions. Additionally, users will be able to exchange PYUSD (PayPal’s stablecoin) for many other cryptocurrencies.
Users will have a balance in their Cryptocurrencies Hub, but they won’t truly own the digital assets; it’s vital to remember this.
Instead, Paxos or other authorised service providers will handle the custody, trading, and transfer functions for these cryptocurrencies.
Your ability to utilize the Cryptocurrencies Hub could depend on you having an active Balance Account and a personal PayPal account, along with our verification of the required identification details you provide. Only your personal PayPal account can access your Cryptocurrency Hub, which is a component of your Balance Account, according to the business.
Also required from users is the identification data needed for verification, such as their name, address, date of birth, and taxpayer identification number.
However, as of right now, residents of Hawaii will not be able to use the cryptocurrency Hub.
PayPal Has Linked Cryptocurrencies Hub to Personal Accounts
The Cryptocurrency Hub and users’ personal PayPal accounts are automatically connected, and the latter’s login information is used to access the former.
Users must go through an identification process the first time they use the Cryptocurrency Hub.PayPal mentioned that, in certain instances involving your Cryptocurrency Hub, they might ask you to submit a photograph of your face or other biometric data to verify your identity.
The business also stated that it is the users’ duty to keep their account information, passwords, and other identification numbers secure and under their control.
PayPal advised maintaining personal data current on the PayPal profile, such as the physical address, postal address, and email address.
The launch of the Cryptocurrencies Hub comes shortly after the payment industry titans revealed they will soon be launching their PYUSD stablecoin.
The blockchain infrastructure company Paxos, which previously released the Binance USD (BUSD) stablecoin, is the issuer of the dollar-pegged currency.
Individuals possessing PYUSD will be granted entry to a platform where they can trade it for US dollars and various other cryptocurrencies supported by PayPal, including Bitcoin, Bitcoin Cash (BCH), Ethereum (ETH), and Litecoin (LTC).
Maxine Waters, a California-based Democrat in Congress, has criticised PayPal’s introduction of its stablecoin, saying the business ought to have waited for federal regulatory approval first.
In a recent statement, she added, “I am deeply concerned that PayPal has chosen to launch its stablecoin while there is still no Federal framework for regulation.”
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