PayPal is reportedly planning to start allowing users on its platform to transfer cryptocurrencies to external wallets, meaning that the company is fully embracing opportunities in the digital currency market.

Jose Fernandez da Ponte, the blockchain lead at PayPal revealed during the Consensus 2021 conference held by CoinDesk, that the remittance company is working on a crypto transfers feature. The latest reveal elevates PayPal’s cryptocurrency embrace to a whole new level. The company started allowing users to purchase Bitcoin and other cryptocurrencies in October last year, thus contributing to the ease of access to the digital currency market.

Da Ponte stated that PayPal wants to make its platform as open as possible so that its users will have the choice of making payments with their preferred means. He also noted that its users want to use cryptocurrencies for commerce-related activities and also to have access to their digital currencies wherever they are in the world.

What the latest news means for the cryptocurrency market

The PayPal cryptocurrency decision to start facilitating cryptocurrency transactions to external wallets is a win-win situation for all parties involved. The company will likely generate more revenue through crypto transactions, an opportunity that it cannot pass up now that the crypto market is going through a phase of widespread adoption.

For users, the announcement means the involvement of a traditional finance company will encourage more crypto adoption. It also means spending their digital assets or moving them around will be much easier since PayPal operates globally. It is a sign that companies in the traditional finance and remittance industry are realizing that the cryptocurrency market is an unstoppable train and the best thing to do is to benefit from the opportunities it provides.

PayPal as a medium for crypto distribution

PayPal’s cryptocurrency position in the market also creates another major unforeseen strategic advantage as a medium of distribution for cryptocurrencies. Once more widespread adoption starts to happen, the company will be one of the few trusted platforms that people will use for crypto remittance. Its long-term presence in the market is a huge advantage for buyers who are skeptical about new platforms and would rather use a traditional institution that dabbles in digital currencies.

The move also has some interesting consequences for any plans to roll out central bank digital currencies. For example, once countries start rolling out CBDCs, trustworthy distribution mediums will be necessary to ensure the optimal distribution of those digital currencies. For example, PayPal would be an ideal medium for distributing stimulus money in the form of CBDCs. Interestingly, Da Ponte did point out that PayPal’s president has been interacting with central bankers from across the globe.  

PayPal would be an ideal medium for CBDCs and this is likely why the company is now diving deeper into crypto-related services. The amount of transaction processing by PayPal would drastically increase and missing out on such opportunities seems counter-intuitive at this point. Da Ponte believes that CBDCs will co-exist alongside stablecoins and other cryptocurrencies, so chances are that PayPal will be supporting all of them.

Will PayPal roll out its own cryptocurrency?

Da Ponte was presented with the question but did not express optimism in the likelihood of a PayPal cryptocurrency token going down that road. He however did not rule out that possibility and even noted that it is still too early to make a definitive decision.

PayPal’s main current focus seems to be on integrating the ability to facilitate transactions, which means blockchain integration. Judging by the latest reports, the developments are ongoing and no timeline has been revealed for when it will officially be possible to start using PayPal for cryptocurrency transfers.