PayPal has stirred up the crypto market
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- Created: Thursday, 22 October 2020 01:29
The world famous PayPal payment system with over 346 million users has added the ability to buy Bitcoin, Bitcoin Cash, Ethereum and Litecoin for US residents. At the beginning of 2021, such an opportunity will appear for other countries. Those. in the short term, all 346 million PayPal users will be able to purchase cryptocurrency as easily as possible using the service they trust. On these news on the crypto market, you can see the revival of trade and the rise in the value of all major crypto assets. Over the past 3 days, Bitcoin has increased in price from 11.500 USD to 12.900 USD (+ 12%), at its peak the price reached 13.200 USD. PayPal to work with cryptocurrencies will cooperate with the Paxos cryptoexchange, for which it has already received a license to work with BitLicense. The recognition of Bitcoin and other cryptocurrencies by such a large company as PayPal is certainly a very positive moment for the entire cryptoindustry, but there are several unpleasant moments in this whole story.
Namely, these are the restrictions in working with cryptocurrencies that PayPal added to the terms of use of its service: it is impossible to deposit or withdraw cryptocurrency from a PayPal account, it is impossible to transfer cryptocurrency to another PayPal user, the user will not have access to private keys (i.e. there will be no access to cryptocurrency outside the PayPal service), there is also a purchase limit of 10.000 USD per week or 50.000 USD per year. In other words, PayPal users will be able to buy and sell cryptocurrency only from PayPal itself at a set rate without a choice, i.e. PayPal can only be used as a convenient and reliable way to store cryptocurrency. Perhaps over time, these restrictions will be lifted, but at the moment, for crypto enthusiasts who actively use cryptocurrencies, PayPal is not suitable.