PayPal launches its cryptocurrency service in the UK. The US online payment giant announced on Monday that it will allow UK customers to buy, hold and sell digital currencies starting this week.
British users can start buying or selling cryptocurrencies for as little as one pound. However, PayPal payments can still not be made directly in Bitcoin or other Kypto currencies. Instead, the cryptocurrency must be sold for traditional currency and its value then used for a cash purchase. Leading cryptocurrencies such as Bitcoin, Ethereum, Litecoin and Bitcoin Cash are available.
Cryptocurrencies at PayPal
The UK cryptocurrency service is the first international expansion of PayPal’s digital currency offering, having first launched in the US in October 2020. US customers have since been able to buy, hold and sell Bitcoin and a handful of other cryptocurrencies. The restriction is that customers are not allowed to take the cryptocurrencies out of the PayPal system, for example into a cold wallet, the offline storage of cryptocurrencies.
“It has done very well in the US,” said Jose Fernandez da Ponte, general manager for blockchain, crypto and digital currencies at PayPal, opposite CNBC. “We expect things will go well in the UK as well.”
PayPal hopes the move will encourage more people to explore the world of cryptocurrencies. This should also open up new possibilities for your own payment services. Cryptocurrencies have been around for a while, according to Da Ponte, but the new PayPal service offers newcomers a good entry point.
Further PayPal plans
The US payment service provider plans to expand its cryptocurrency service to other markets after the launch in the US and UK. “We consciously start with the first functions and then see where the market leads us. Different markets have different appetites for products,” says Da Ponte.
PayPal strengthened its cryptocurrency offering in March 2021 with the acquisition of the specialist security company Curv. The Tel Aviv-based start-up promises to protect its customers’ digital assets through an innovative cryptography method.
Since March, PayPal has also enabled direct payments with cryptocurrencies in the USA. The “Checkout with Crypto” function enables direct payment with crypto currencies from the PayPal wallet. This allows Bitcoin, Ethereum and other digital currencies to be converted directly into US dollars, at least when shopping in online shops.
In the meantime, the digital currency Bitcoin continued its upward trend of the last few weeks after the recent, in some cases drastic, price drops at the beginning of the week. On Monday, a Bitcoin cost more than $ 50,000 for the first time since May.