British customers can now buy, sell and hold digital currencies through PayPal.
In March, PayPal started allowing its US consumers to use its crypto holdings. If you have bitcoin, ether, and lite coins in PayPal digital wallets, you could convert their holdings into fiat currencies.
Recently, it launched its crypto service in the UK. The digital payment giant stated that British customers can now start buying, holding, and selling digital currencies.
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The cryptocurrency service is doing well in the US and PayPal is confident that it will also be the same in the UK.
The crypto feature lets you buy or sell bitcoin cash, bitcoin, ethereum, or lite coin for just £1. You can also track the prices in real-time and read content to educate yourself about crypto.
Moving to digital forms of currencies is expected. PayPal believes that digital currencies have advantages when it comes to efficiency, speed, and resiliency.
PayPal will work with central banks and regulators worldwide to contribute to shaping digital currencies’ role in the future of commerce.
To launch the service in the UK, it has teamed up with Paxos, a crypto start-up company. Paxos has been granted a conditional digital currency license in New York. PayPal has engaged with UK regulators to introduce the service.
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The said crypto service from PayPal is similar to Revolut, a UK finch firm. PayPal users cannot move their holdings outside the app.
Revolut, on the other hand, may allow users to withdraw bitcoin to their personal wallets after it’s done testing a feature.
PayPal is one of the finance companies that entered the unregulated world of crypto. Crypto has price volatility, which is one of the worries of many regulators.
Furthermore, there’s not enough consumer protection policy. Plus, there’s a huge chance of it being used to launder money.
However, many major firms, like Tesla and Facebook, are starting to embrace crypto.
PayPal anticipates that digital currencies will play a huge role in eCommerce in the long run. As mentioned, PayPal, started to allow US consumers to utilize crypto to pay at one of the online merchants globally.
The company wants to continue to expand the said feature in other markets. At first, PayPal will start with one functionality and find out if it will pan out.
The company has to test the functionality before moving forward because different markets have different appetites for its products.
Regulators in the UK are wary about the increasing popularity of digital currencies.
But central banks are now exploring the potential to use their own digital currencies. In fact, the UK Treasury and Bank of England said that it’s looking to launch a digital version of its British pound and it may be called Britcoin.
Cryptocurrencies are known for their wild price swings. Bitcoin, for instance, rose to $20,000 in 2017 before it went down the following year.