PayPal will allow cryptocurrency transactions for all users. However, the service warns that funds transfers may take longer than usual.
Starting October 26, all PayPal users in the US will be able to officially buy and sell bitcoins and other digital currencies on the platform. The service notes that the cryptocurrency can be used to pay for goods at more than 26 million sites that cooperate with PayPal. However, they will not receive payment other than Bitcoin, Ethereum, or Litecoin. Instead, PayPal will pay in local currency – in this case, dollars.
The company will also publish materials that will help users understand how cryptocurrencies work, digital currency ecosystems, and the risks and opportunities associated with investing in them. The company will not charge user service fees to buy or sell cryptocurrencies until the end of the year, nor will users have to pay fees either.
PayPal also plans to start using cryptocurrency at Venmo in the first half of 2021. The service hopes that this will allow users in other countries to buy and sell cryptocurrency.
Dan Shulman, CEO of the company, noted that the move will contribute to the global spread of the cryptocurrency. The service also prepares central banks and corporations to create their own currencies. PayPal cites a survey of central banks that one in 10 of them plans to launch digital versions of their currencies within the next few years.
PayPal noted that virtual currencies can be volatile and transactions slower and more expensive than other payment methods. Therefore, users “should exercise some caution” when dealing with PayPal.