PayPal to allow users withdraw cryptocurrencies to external wallets

Paypal has announced plans to allow its users to withdraw cryptocurrencies to external wallets.

The California-based company, which opened its platform to digital currencies in October 2020, presently does not let users move cryptocurrency holdings off its platform.

Speaking at CoinDesk’s Consensus 2021 conference, Jose Fernandez da Ponte, the Vice President, General Manager of Blockchain, Crypto and Digital Currencies for PayPal, told moderator Jeff John Roberts that a withdrawal function is in the works.

He stated, “We want to make it as open as possible, and we want to give choice to our consumers, something that will let them pay in any way they want to pay.

They want to bring their crypto to us so they can use it in commerce, and we want them to be able to take the crypto they acquired with us and take it to the destination of their choice.”

It is still unclear when the withdrawal functionality is coming. During the event, Jose Fernandez da Ponte was also probed about central bank digital currencies (CBDCs), since the PayPal Vice President said he had met with central bankers around the world. He said, “It absolutely makes sense that central banks will issue their own tokens.”

Although he did not accept the common view that only one out of stablecoins or CBDCs would become dominant, he commented on the matter stating, “Sometimes we position the debate as CBDCs versus stablecoins, but it’s a bit of a fake debate. There is no trade-off. We think they will co-exist.”

Jose Fernandez da Ponte was also asked about the possibility of PayPal launching its stablecoin and he stated, “This is way too early.”

PayPal users will now be able to withdraw cryptocurrencies to their wallets or other exchanges depending on a user’s need. This will help with access and mass adoption of cryptocurrencies on a larger scale to individuals who have PayPal working in their jurisdiction. Bitcoin is trading $39,100 currently down 2.90% since the news of Iran banning cryptocurrency mining hit the media yesterday.