For years, PayPal has been staying away from cryptocurrencies, not even allowing its service to be used for transferring money to and from crypto exchanges. This changed in late 2020 when the service announced that it would add support for digital coins on its own platform. Then, in 2021, the company expanded its service into the UK, adding support for digital assets, but only for UK users, while the rest of European countries still had to wait for some future date.
Now, however, PayPal is ready to expand its crypto service into the 26-country trading bloc, and it decided that its first crypto incursion into the EU should start in Luxembourg. After all, the small land-locked country already houses the company’s headquarters, so starting there only makes sense.
The company announced this in an update that did not say when exactly cryptos might become available, only noting that it will happen in the “coming days.” Once the support is added, the locals will be able to use PayPal to buy, sell, or store their digital assets using both the website and the PayPal mobile app.
PayPal will start by adding support for four different cryptos, including Bitcoin, Bitcoin Cash, Litecoin, and Ethereum. The minimum purchase will be only 1 EUR in order to make a new service available and affordable for everyone to use. Users will be able to make purchases either by using the funds stored in their PayPal wallet, through EU-issued debit cards or via linked bank accounts.
PayPal could contribute to better understanding of crypto in the EU
PayPal’s Senior Vice President and General Manager for blockchain, crypto, and digital currencies, Jose Fernandez da Ponte, commented on the new development. He said that the expansion of crypto services into Luxembourg is a big and important step for PayPal, and especially its mission to make crypto assets and services more accessible.
After all, the company’s fiat payment services are widely used throughout Europe, and now, it is simply adding more for all of its existing users, which might also result in attracting new ones. SVP added that PayPal remains committed to continuing to work closely with policymakers and regulators in order to contribute to shaping the role that cryptos will play in the future of global finance and commerce.
As such, PayPal’s technology, experience with crypto, and other aspects could help lawmakers decide when the time to vote on Europe’s landmark Markets in Crypto Assets (MICA) regulation comes in 2023. New regulations could make the environment more friendly for exchanges and other crypto companies, and PayPal could be spearheading the creation of such an environment.
Back in June of this year, PayPal also announced that it would allow the transfer of crypto assets to personal wallets, as well as to wallets of crypto exchanges, thus becoming a part of the greater blockchain ecosystem. This was a major step forward, as before the announcement, PayPal only allowed the purchase and sale of cryptos within its own platform, which made the coins purchased there completely isolated.
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