PayPal Introduces New Crypto Hub For Its PYUSD Stablecoin Users
Last week, PayPal made a major announcement while introducing its USD-pegged PYUSD stablecoin in the market, issued by Paxos Trust Co.
Taking a step further, the American multinational and payments giant has now updated the terms and conditions for its cryptocurrency hub, allowing users to hold and interact with Bitcoin and other digital assets in the PayPal account.
The most recent terms and conditions for PayPal mention the requirements that crypto users should meet in order to use the platform. The Cryptocurrency Hub plays a crucial role in PayPal's evolution into a crypto-friendly platform. According to the company, this service will facilitate the buying and selling of cryptocurrencies.
PayPal notes: “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 themselves in your Crypto Asset balance.”
Furthermore, it will allow payments to be made using PayPal, and the funds obtained from selling cryptocurrencies will be retained. The Cryptocurrency Hub will also play a vital role in converting PYUSD into different cryptocurrencies.
The payments giant further clarified: “You can only use your Cryptocurrencies Hub as part of your Balance Account by accessing it through your personal PayPal account. If you are a Hawaii resident, we will not allow you to establish a Cryptocurrencies Hub at this time.”
However, not all PayPal users will gain access to the new feature, as access will be determined on an individual basis by the company. To be eligible for the Cryptocurrencies Hub, a PayPal user must possess "a personal PayPal account and a Balance Account in good standing.”
Furthermore, PayPal will verify the essential identification details provided by users, including their name, address, date of birth, and taxpayer identification number. Once launched, the Cryptocurrencies Hub will be directly connected to the user's existing PayPal account, accessible using their current login credentials.
The introduction of PayPal USD sparked diverse opinions within the cryptocurrency community, with conflicting viewpoints about its impact on cryptocurrencies prevailing. While some believe PYUSD could hasten Ether's mainstream adoption, others express concerns about potential implications for decentralization and individual asset control.
Several auditors specializing in smart contracts highlighted that the PYUSD smart contract includes functions like "freeze funds" and "wipe frozen funds," which they consider to be indicative of centralization attack vectors within Solidity contracts.