The Fact News Service,
After years of hesitation, PayPal continues to double down on cryptocurrency. Soon, PayPal users in the U.S. will be able to transfer, withdraw, and exchange their crypto (like Bitcoin) across popular third-party platforms and digital wallets like Coinbase, the company’s VP of Global Business Development Jose Fernandez da Ponte announced Wednesday at the CONSENSUS 2021conference. It is yet another step in PayPal’s recent efforts to fully support and become a part of the unwieldy landscape of the cryptocurrency ecosystem.
But the latest announcement more fully enmeshes PayPal into the ever-expanding and decentralized world of cryptocurrency exchange. By not restricting users to users to utilizing their digital currencies exclusively through PayPal platforms, it addresses previous backlash the company got from the crypto community. Its previous approach, which excluded third-party wallet apps where a lot of people’s crypto lives, was criticized for running counter to the most fundamental principle of crypto.
The whole point of this digital currency, according to advocates, is to create a system of commerce that is not controlled by any single organization, company, or country. So by trying to keep things exclusive to their platform, PayPal was accused of placing a stranglehold on users that inherently devalued the crypto bought through it. If the Bitcoin on PayPal could not be freely exchanged across third-party wallet apps, critics said, then how could it even be considered “real” cryptocurrency.