Last week, smartereum.com reported that PayPal had created an internal blockchain for its staff. To show that the payment giant has developed strong interest in cryptocurrencies and the industry as a whole, it recently partnered with Coinbase to enable instant crypto-to-crypto withdrawals on the platform. What this means is that users will be able to move their cryptocurrencies into their PayPal accounts. What’s more, it is 100% free. Part of the announcement made on the Coinbase blog was as follows:
“The withdrawals are fast and free. You’ll not need to pay any fees. Converting and moving your cryptocurrencies to cash has never been this easy or this affordable.”
An Open Financial System
Before now, a user who intends to withdraw funds from PayPal would need a federal wire account or an automated clearing house to move the funds. This may last for up to two business days. Thanks to this new arrangement, users can get their funds instantly for free.
A Coinbase executive, Allen Osgood said the service was launched in response to the demands made by customers. In his words:
“We believe having an open financial system is more important than simply owning cryptocurrencies. Users should be able to use it anytime and any how they want. By taking this step to integrate PayPal, we have moved one step towards giving our customers instant and smooth access to their funds.”
For now, this service is only available in the United States. However, the company stated that it will make it available in more countries by next year.
Coinbase: More Than A Cryptocurrency Exchange
When you hear the name Coinbase, the first thing that comes to mind is the cryptocurrency exchange. However, Coinbase is more than just an exchange. Behind the scenes, the company is making moves to ensure that cryptocurrencies are adopted mainstream. Along with Circle and other cryptocurrency related firms, Coinbase has been discussing with policy makers. The company is taking steps to promote adoption of cryptocurrencies by penetrating the industry.
Thanks to the effort of Coinbase and Circle, a lobbying group was launched and three bills specifically for the development of blockchain and cryptocurrencies were launched. Thankfully, some members of congress in the United States are in support of the promotion of blockchain technology. Tom Emmer, a co-chairman of the Congressional Blockchain Caucus, said that the United States needs to prioritize blockchain development as well as create an environment that will be friendly to private investors and encourage innovation. In his words:
“This is an exciting era for cryptocurrencies and blockchain technology. Legislators need to embrace these emerging technologies and provide a clear regulatory framework that will allow the industry to flourish in the United States and eventually on a global scale.”