Key Insights
- PayPal CryptoHub allow selected users to be able to store, buy and sell cryptocurrencies.
- PayPal will act as a gateway for users to pay for goods and services using cryptocurrency
- The hub will also allow you to convert cryptocurrency to PayPal stablecoin (PYUSD)
Payment platform PayPal has updated the terms of use of its services, introducing a new feature for cryptocurrency users.
What is PayPal Cryptohub?
This new feature called “Cryptohub” contains terms and conditions that PayPal users must comply with before conducting cryptocurrency transactions.
Along with the update, users will be able to store, buy and sell cryptocurrencies such as Bitcoin (BTC) and other assets. PayPal will act as a gateway for users to pay for goods and services using cryptocurrency.
The hub will also allow you to convert cryptocurrency to PayPal stablecoin (PYUSD).
Read also: How to Buy PYUSD Stablecoin on PayPal – A Simple Guide for Beginners
Any balance in your cryptohub represents your property for the amount of each displayed crypto asset. You will not store the digital cryptoassets themselves on the balance of cryptoassets, the message says.
However, not all PayPal users will have access to the cryptohub. Availability of access depends on the balance of the account and its “good reputation”, the identification information that users have provided on the platform, and the device used to work with PayPal.
You can only use the cryptohub as part of your balance account by accessing it through your personal PayPal account. If you are a resident of Hawaii, we will not allow you to create a cryptohub at this time,” PayPal said.
In early August, PayPal launched PYUSD. According to CEO Dan Shulman, the stablecoin will solidify the company’s dominance in digital payments by enabling instant and cheap transfers without a centralized authority.
PYUSD will be used primarily in the cryptocurrency and Web3 sectors, in particular for other digital token trading and in-game payments. Later, its application may spread to other areas.
Read also: Huobi Crypto Exchange Announces Support for PayPal USD (PYUSD)
PayPal believes that PYUSD has several key advantages. First and foremost, the company has an extensive network of over 435 million active accounts. This will allow you to easily distribute PYUSD within the system. What’s more, PayPal has interoperability. So, the infrastructure for sending PYUSD outside of the PayPal ecosystem already exists.