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PayPal has announced the debut of its bitcoin business in the United Kingdom. Starting this week, 23rd August 2021, the online payments giant said that British clients would be able to purchase, hold, and trade digital currencies. It’s the first worldwide extension of PayPal’s cryptocurrency service, which debuted in the United States in the October, last year.
PayPal’s Global Manager for blockchain, crypto, and digital currencies, Jose Fernandez da Ponte said, it has been performing extremely well in the US. We believe it will sell well in the United Kingdom. Customers may purchase or trade bitcoin, bitcoin cash, ethereum, or litecoin for as little as £1 using PayPal’s crypto function. Users may also discover instructional information on the market and watch crypto values in real time.
PayPal is depending on Paxos, a New York-based digital currency business, to facilitate crypto buying and selling in the United Kingdom, just as it is in the United States. PayPal said it has been in contact with key UK regulators in preparation for the launch of the service. PayPal’s crypto service is comparable to that of Revolut, a fintech company based in the United Kingdom. PayPal customers can’t move their crypto holdings outside of the app, just like Revolut users can’t. Revolut has just begun testing a function that allows users to withdraw bitcoin to their own private wallets.
PayPal claims that its entry into the cryptocurrency market is motivated by a desire to make it easier for consumers to participate in the market. The tokens and coins have been available for a long, but you had to be a really experienced user to access them, said da Ponte. Having that on our platform makes it a great entrance point. The payments processor is one of many big financial institutions that have entered the mostly unregulated cryptocurrency market. Despite continued worries about price volatility, consumer protection, and possible money laundering in the market, big corporations such as MasterCard, Tesla, and Facebook have recently shown an interest in crypto.
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Bitcoin, the world’s most popular digital currency, reached a peak of over $65,000 in April 2021 before plummeting to around $30,000 in July 2021 as Chinese officials tightened their grip on the market. Its value has since rebounded to $48,400. While PayPal began with cryptocurrency trading, the business believes that in the long term, digital currencies will play a larger role in e-commerce. PayPal began allowing U.S. customers to pay using cryptocurrency at millions of its online businesses throughout the world earlier this year. Venmo, the company’s famous mobile wallet, now supports crypto buying and trading.
PayPal’s crypto service is being launched in the United Kingdom at a time when regulators are becoming increasingly concerned about the emergence of digital currency. The Financial Conduct Authority (FCA) suspended the British unit of Binance, the world’s largest cryptocurrency exchange, in June 2021, alleging a failure to comply with money-laundering regulations. Meanwhile, as cash usage in a number of industrialized countries declines, central banks are considering the possibility of issuing their own digital currencies. The UK Treasury and Bank of England said in April that they will consider the introduction of a digital version of the British pound, nicknamed “Britcoin” by the British press.