This move closely follows the recent introduction of their dollar-backed stablecoin, PayPal USD (PYUSD), which elicited mixed reactions from the crypto community.
The Cryptocurrencies Hub feature is designed to serve as a gateway for users seeking to explore the cryptocurrency landscape.
This hub will enable select PayPal users to interact with cryptocurrencies, including Bitcoin and Ethereum, directly within their PayPal accounts.
Another crucial feature of the Cryptocurrencies Hub is the capability to buy and sell cryptocurrencies, making it a convenient platform for trading.
Moreover, it will also facilitate payments through PayPal using funds generated from the sale of cryptocurrencies.
This feature not only expands PayPal’s offerings but also makes it more versatile for users who are interested in venturing into the crypto market.
The Hub and PYUSD
One of the significant aspects of the Cryptocurrencies Hub is its role in enabling conversions between PYUSD and various other crypto assets.
This feature is likely to appeal to users who wish to diversify their holdings and explore different cryptocurrencies.
According to Paypal, the balance displayed in users’ accounts on the Cryptocurrencies Hub signifies ownership of specific quantities of each Crypto Asset listed.
However, it’s important to note that this balance does not equate to holding the actual digital Crypto Assets within the Cryptocurrencies Hub.
Also, the global payment company added that there will be restrictions for certain individuals based on their regions, and other factors.
The launch of PayPal USD, the company’s dollar-backed stablecoin, generated a mix of reactions within the crypto community. While some see it as a step toward mainstream adoption of cryptocurrencies, others have raised concerns about the potential impact on decentralization and personal control of assets.
In particular, certain aspects of the smart contract associated with PYUSD have been highlighted as potential centralization vulnerabilities.