A few days ago, the payment giant announced its intention to add new features that will enable its users to buy and sell cryptocurrencies on its payment platform.
The company said it will launch the new features in early 2021. The digital currencies that will be allowed at launch include Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), and Litecoin (LTC).
Brad Garlinghouse Explains Why PayPal Excludes XRP
In a recent conversation with Bloomberg, Brad Garlinghouse opined that PayPal feels safer with the listed crypto assets from a regulatory viewpoint.
“PayPal I think has said they plan to go live with Bitcoin and Ether, and part of that goes back to the regulatory clarity. If you are a company looking at investing in or building upon a 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.
And that’s what you’ve seen, I think, not just with PayPal but certainly others in the marketplace that say, ‘I’m going to start with Bitcoin and Ether because they have the good housekeeping seal of approval in the United States.’
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.”
Additionally, in a tweet shared on 21st October in response to PayPal’s announcement, Garlinghouse said the fact that the payment behemoth won’t allow users to transfer digital assets to other wallets is a disappointment.
2 steps forward, 1 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.
Meanwhile, Ripple, the cross-border payment giant, has been considering a move away from the United States, citing a hostile regulatory atmosphere. And its most likely destinations are said to be Japan and Singapore.
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