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From the letter sent to the European Commission it has become known that PayPal is working on crypto payment capabilities.
PayPal Holdings Inc (NASDAQ: PYPL) has corroborated its crypto payment capabilities. The payments giant confirmed this in a letter to the European Union. The document was originally delivered in March this year. This letter was a response to the EU’s consultation process for the building of a framework for cryptocurrencies and digital assets.
At the time of writing, PayPal (PYPL) stock price was down 0.30%, at $170.99.
In the letter, PayPal reiterated that it is the payment giant’s mission to “democratize access to financial services and the digital economy across the globe”.
PayPal to Deliver Crypto Capacities across Its Global Audience
PayPal has a user base of more than 300 million people. The payments giant indicated that it is a compliance-driven organization. Its license for the provision of banking and payment services in Luxembourg is one such example.
The company also spoke about its adherence to rules and regulations laid down by governments.
As regards the EU framework on the crypto space PayPal was direct. While alluding to the fact that the crypto space had grown in the last few years, the payments giants said:
“As such, PayPal is continuously monitoring and evaluating global developments in the crypto and blockchain/distributed ledger space”.
“Of particular interest for us is how these technologies and crypto-assets can be utilized to achieve greater financial inclusion and help reduce/eliminate some of the pain points that exist today in financial services”.
PayPal also indicated that it would support a “harmonized approach across EU markets” for licensing or authorization requirements.
PayPal has historically been one of the world’s biggest payment processors, this approach represents a willingness to consider the inclusion of the crypto space as part of its offerings.
Libra’s Association Had Issues
Last year, the payments processor had joined Facebook‘s attempt to enter the crypto space via the Libra association. it also quit the association in October last year. It was the first organization to do so.
Chief among the concerns of many people was the alleged attempt of Libra to cartelize the crypto world. The exclusion of China from the Libra Association also didn’t go down well.
The Chinese got the inspiration to do their own thing and so far are on course to implement their Central bank digital currency (CBDC).
PayPal (PYPL) though has developed cryptocurrency capabilities. It indicated this in the letter saying:
“Since the project’s inception, PayPal has taken unilateral and tangible steps to further develop its capabilities in this area, and therefore – without questioning the value of the project – took the decision not to participate in the Libra Association and to continue to focus on advancing our existing mission and business priorities to democratize access to financial services.”
PayPal’s official position before now has been unclear. it shows that the development of cryptocurrency enterprise solutions is underway.
Before now the sale of cryptocurrencies had occurred under different auspices. Coinbase had offered the purchase of cryptocurrencies with PayPal as one solution that worked. Now, it seems that the payment services provider wants to go into the game for itself.
Time will tell.