Paypal will soon allow users to transfer cryptocurrency to third-party wallets. This means that PayPal and Venmo users will not only be able to send bitcoins to other users within the platform, but also withdraw them to platforms such as Coinbase and external cryptocurrency wallets.
However, PayPal has yet to announce when the company will launch its encrypted withdrawal feature. PayPal is implementing these changes as the company recognizes that the use of digital assets is growing rapidly.
Jose Fernandez da Ponte, Head of Blockchain and Encryption at PayPal, said: “We want to make the system as open as possible and give our consumers the ability to pay any way they want.”
Recently, there have been rumors that PayPal is planning to launch its own stablecoin. This is the name for cryptocurrencies that are tied to stocks of conventional currencies or physical goods and whose exchange rates are subject to less fluctuations than the rates of typical cryptocurrencies. Fernandez da Ponte said it was too early to comment on these rumors.
Earlier this month, the CEO of PayPal said PayPal’s encryption business has generated significant profits for the company. The company’s first-quarter results were better than expected, with adjusted earnings of $ 1.22 billion. This exceeds the average analyst estimate of $ 1.01 billion. The company said that customers who buy cryptocurrency through the platform log into PayPal twice as often as before.