Crypto Hub enables cryptocurrency transactions
PayPal has launched a new Crypto Hub feature for customers. The service allows users to store and trade cryptocurrency directly in their accounts.
Use of this function is subject to compliance with several conditions published in the PayPal Customer Agreement. According to these rules, the system allows you to make transactions with Bitcoin and other digital assets. In this case, PayPal acts as an intermediary, taking care of the payment process using cryptocurrency.
The payment system’s new service will be available to a limited number of customers, the choice of which the company has left to itself. To access Crypto Hub, a user must have a personalised account and a good balance history. PayPal considers each user individually and verifies the necessary information, including personal details, addresses, and tax documents. However, the company notes that the CryptoHub will only work with a balance account, which you can access through your account.
At the moment, Crypto Hub is not available to Hawaii residents, but the company plans to extend the functionality to that market. The company also promises that the approval process for the feature will be as quick as possible.
PYUSD opportunities on Crypto Hub
With the help of Crypto Hub, it is possible to convert cryptocurrency into a stablecoin from PayPal. In particular, the release of the token from the payment system caused a mixed reaction in the crypto community. On the one hand, the PYUSD stablecoin accelerates the spread of Ethereum. Still, on the other hand, it may become a limiting factor for decentralisation and reduce the ability to control assets.
Some smart contract auditors have noted that the stablecoin’s structure includes freezefunds and wipefrozenfunds features. These pose the risk of a centralisation attack on stablecoin contracts.
PayPal launched its own dollar stablecoin in August 2023. The tokens can transact between accounts within the payment system and with external wallets. PayPal is positioning its cryptocurrency as a convenient tool for buying goods and services, as well as exchanging for other digital assets supported by the system:
– the token is backed by various types of financial instruments, including dollars and short-term bonds;
– it is possible to exchange both for dollars and other cryptocurrencies;
– the stablecoin will be a part of wallets and applications.
The developer of the token is a company called Paxos Trust. It has also committed to publishing regular reports on the stablecoin’s reserves. PayPal promises that the processes with PYUSD will be as transparent as possible. To monitor them, the payment provider promises to hire independent auditors.