PayPal, a name we reckon and associate with safe and secure ways of dealing with payments, has also decided to step into the crypto space. Earlier this week, PayPal announced that the users and consumers will now be able to buy, sell, and store cryptocurrencies in the coming week will be made possible. Support on Venmo as well as in additional countries will come forth in the year 2021. Bitcoin, Ethereum, Bitcoin Cash, and Litecoin are the first coins that will be supported.
With the new integration, and PayPal coming into the crypto markets, the market reception was enthusiastic with the markets taking a surge overall. Customers will be able to use the crypto assets as a payment option on the 26 million websites that support PayPal. The cryptocurrencies will be first converted to fiat at a fixed price and merchants will receive cash from PayPal.
While PayPal decided to begin its voyage only with these coins initially, Ripple’s Chief executive Brad Garlinghouse has also offered his opinion as to why PayPal did not include XRP to the list of coins. He said that he believes PayPal made the decision from the regulatory perspective. He added that the payment giant might have thought that these coins were safe as the regulations around these assets were clearer.
“PayPal I think has said they plan to go live with Bitcoin and Ether, and part of that goes back to regulatory clarity. If you are a company looking at investing in or building upon technology like XRP or like other digital assets, if there’s not regulatory clarity, then you’re likely to go with the ones that are clear.”
He added that this is the case not just with PayPal but many others in the marketplace also that say they will begin with Bitcoin and Ether because they apparently have a good seal of approval from the United States. He also compared the US markets to that of Japan. He said:
“In other countries, frankly like Japan, you see a much broader base where there is a level playing field and you see multiple participants achieving success in that market.”
The Chief executive also compiles his overall view on the new PayPal in the crypto industry by insisting that the inability of the users to move their crypto assets to other wallets could be a wrong move.
“Two steps forward, one step back. Great to see a payment pioneer leaning in, but disappointing some fundamental tenets/benefits of crypto are spurned. I suspect PayPal is concerned about the (wait for it…) regulatory uncertainty, impacting its roll-out on a number of levels.”
Amid all this, Ripple is already considering the idea of moving its headquarters out of the US because the entire corporate feels that the US regulatory scene is very hostile towards crypto. He is unable to see when the US will create an even playing field for all players in the market.