PayPal launches Cryptocurrencies Hub

Natalie Portman
By Natalie Portman 5 Min Read
origin 1A woman holds a smartphone with the logo of the payment service Paypal. Sebastian Kahnert/dpa

US financial technology firm PayPal Holdings Inc has launched its latest feature, the Cryptocurrencies Hub, the company said on Monday.

This groundbreaking addition to its platform allows users to seamlessly engage with Bitcoin and various cryptocurrencies within their PayPal accounts.

The move comes hot on the heels of PayPal’s introduction of the PayPal USD or PYUSD stablecoin, a digital token pegged to the US dollar.

In a significant update to its terms and conditions, PayPal has outlined the prerequisites for users interested in leveraging the new crypto-centric feature.

The Cryptocurrencies Hub facilitates the buying and selling of cryptocurrencies, as well as enabling users to make purchases using funds obtained from crypto sales.

Moreover, it offers a streamlined method for converting between PYUSD and other crypto assets, enhancing flexibility within the platform.

However, the finer details of the Cryptocurrencies Hub have stirred discussions within the crypto community.

PayPal clarified that while users’ crypto balances are represented within the hub, they do not directly possess the digital assets themselves. The implementation of this approach aims to provide a secure and regulated environment for users to navigate the world of cryptocurrencies.

Access to the Cryptocurrencies Hub will not be universally granted to all PayPal users, as the company will evaluate eligibility on an individual basis.

To qualify for the feature, a PayPal user must hold a personal PayPal account in good standing, along with a Balance Account. Additionally, the company will verify crucial identification information, encompassing details such as name, address, date of birth, and taxpayer identification number.

The unveiling of the Cryptocurrencies Hub has elicited mixed reactions within the crypto space.

Enthusiasts view the move as a potential catalyst for broader adoption of cryptocurrencies, with the introduction of PYUSD seen as a potential driver for mainstream acceptance of assets like Ether.

However, concerns have also been raised regarding the potential implications for decentralization and personal asset control.

Notably, experts in the field of smart contract auditing have drawn attention to certain functions within PYUSD’s smart contract, including “freezefunds” and “wipefrozenfunds,” which they argue could present vulnerabilities and centralization risks within the framework of Solidity contracts.

As the Cryptocurrencies Hub rolls out, direct integration with users’ existing PayPal accounts ensures seamless accessibility.

The feature marks a significant step forward in PayPal’s journey into the world of cryptocurrencies, promising a novel way for individuals to engage with these digital assets.

PayPal said earlier on Monday that its board of directors has appointed senior Intuit executive, Alex Chriss, as president and chief executive, effective September 27. Chriss will also join the board on that date, it said.

Chriss will succeed Dan Schulman, who announced in February his intention to retire from the company on December 31, 2023.

Schulman will remain on the board of the company until its next annual meeting of stockholders in May 2024.

The appointment follows a thorough chief executive search process, conducted by the board over the last number of months. Chriss has the unanimous support of the board and its chief executive search committee following extensive engagement and evaluation across all of the key metrics that are critical to PayPal’s future success.

Chriss is a seasoned and highly successful business leader, steeped in technology and product leadership experience who, since January 2019, has served as executive vice president and general manager of Intuit’s small business and self-employed group, responsible for more than half of Intuit’s revenue.

Chriss joined Intuit 19 years ago, serving in increasing levels of leadership across the company, including creating Intuit’s partner & developer platform, leading the self-employed solutions team and then serving as the small business group’s chief product officer from 2017 to 2019.

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