on the crypto
A letter sent to the European Commission revealed that PayPal is working on developing crypto payment features.
The commitment to "democratize access to financial services and the digital economy worldwide"
PayPal Holdings Inc (NASDAQ: PYPL) has confirmed its commitment to the crypto payments sector. The payment giant officially unveiled its plans in a letter to the European Union. The document was originally delivered in March of this year.
The letter was the final step in the EU consultation process for building a framework for cryptocurrencies and digital assets. At the time of writing, the price of PayPal shares (PYPL) rose 0,46% to $ 172,30. In the letter, PayPal reiterated that its mission is "to democratize access to financial services and the digital economy worldwide".
PayPal will provide the new crypto features to its global user base
PayPal has a user base of over 300 million people. The payment giant has indicated that this is a compliance-based operation. His license for the provision of banking and payment services in Luxembourg is an example. The company also spoke of its adherence to the rules and regulations established by governments.
Regarding the EU framework on crypto space, PayPal has been direct. The payment giant explained that the crypto space has grown in recent years, stating that "Therefore, PayPal constantly monitors and evaluates global developments in the crypto space and blockchain / Distributed Ledger Technology".
PayPal continued: "Of particular interest to us is the way in which these technologies and crypto-assets can be used to achieve greater financial inclusion and help reduce / eliminate some of the weaknesses that exist today in financial services."
PayPal also indicated that it would support a "harmonized approach in EU markets" for licensing or authorization requirements. PayPal has historically been one of the largest payment processors in the world, this approach represents the desire to consider the inclusion of crypto space as part of its offerings.
The problems with the Libra Association
Last year, the payment processor joined Facebook's attempt to enter the crypto space through the Libra association. PayPal left the association in October last year. It was the first organization to do this.
The main concern among many people was Libra's alleged attempt to put a "cartel" in the world of cryptocurrencies. China's exclusion from the Libra Association was also not a good choice.
The Chinese have gone ahead on their own and are well on their way to implementing their Central Bank Digital Currency (CBDC). In the letter, PayPal did not fail to mention Libra's argument.
"From the beginning of the project, PayPal has taken unilateral and tangible measures to further develop its capabilities in this sector and therefore, without questioning the value of the project, has decided not to participate in the Libra Association and to continue to focus on progress of our current mission and business priorities to democratize access to financial services. "
