The payments platform steps deeper into the crypto space with a new tool
PayPal is taking another step forward with its plans to embrace cryptocurrency. The new Cryptocurrencies Hub is crucial to PayPal’s plan to reinvent the platform as crypto-inclusive and will allow users to buy and sell cryptocurrencies, among other features.
The online payments giant recently launched its PayPal USD (PYUSD) stablecoin and updated its terms and conditions to present the new Cryptocurrencies Hub, which permits users to hold and conduct cryptocurrency transactions using their PayPal account.
The update to PayPal terms and conditions describes the requirements for crypto users. The company says the Cryptocurrencies Hub feature will permit the sale and purchase of crypto and facilitate payments for online purchases via PayPal using funds stored in users’ accounts after selling cryptocurrencies.
The Cryptocurrencies Hub will also be necessary to convert funds between PYUSD and other crypto. PayPal also explained: “Any balance in your Cryptocurrencies Hub represents your ownership of the amount of each Crypto Asset shown. You will not hold the digital Crypto Assets yourself in your Crypto Asset balance.”
However, the company will decide which individuals will be allowed access to the new feature. To be eligible for Cryptocurrencies Hub, a PayPal user must have “a personal PayPal account and a Balance Account in good standing.” Additionally, PayPal will verify the required identifying details, including name, address, birth date, and taxpayer id number users provide. Upon launch, PayPal will link the Cryptocurrencies Hub directly to the customer’s account, which they can access using their current credentials.
While many foresee PYUSD fast-tracking Ether’s mainstream acceptance, it may also pose a risk for decentralization and individual control of assets, warns the crypto community. Various auditors have emphasized that PYUSD’s smart contract includes “freezefunds” and “wipefrozenfunds” functions, which they argue are prime examples of Solidity contracts with centralization attack vectors.
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