PayPal hints at impending crypto capabilities

Posted:: Jul 17, 2020 09:13 Category: Payments , Posted by Jeremy Micallef

PayPal could be lighting the match that ignites the mass adoption of Crypotcurrencies!

In a letter addressed to the European Commission (EC), payment provider PayPal dropped a hint that it is developing its own crypto capability technology.

Whilst responding to the EC on its public consultation on building an EU framework for markets in crypto-assets, the Silicon Valley company noted that they have taken unilateral and tangible steps to further develop its capabilities in this area. bitcoin gold coinThey said this in passing whilst recounting their brief participation in the Libra Association with Facebook in 2019, along with other payment providers such as Visa and Mastercard.

“As an innovative FinTech company and by virtue of its mission, PayPal is monitoring the evolution of its crypto-asset space,” they began, going on to say that they “initially signed a non-binding letter of intent to participate in the Libra Association with the intention of learning more about the proposed use of blockchain technologies”.

They explained that they left to continue to focus on advancing their existing mission and business priorities to democratise access to financial services.

On the EC’s work to build an EU framework involving crypto-assets, they noted that “the crypto-asset industry has experienced substantial growth over the past few years and has become a subject of considerable discussion and debate”.

The three fundamental principles PayPal said should underpin the development for this framework involved:

  1. A clear set of definitions on various crypto activities to ensure proper licencing and regulation, as this might discourage companies from entering the market, or allow others to exploit the system.
  2. That crypto-activity be brought in the scope of applicable AML/CFT requirements, depending on the activity in question, focusing on the proper application of a risk-based approach.
  3. The continuous advancements in areas such as decentralised networks, consensus protocols, and cryptography, any regulatory framework in Europe should strive to be technology-neutral to support innovation and competition.

With a license to provide banking and payments services in Luxembourg, PayPal serves customers and businesses in 31 European jurisdictions, representing about 95 million merchants and consumers.

See the full letter here.

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