For years, there were rumors surrounding the PayPal cryptocurrency future, even though no official statements from the company suggested such a thing. Until this week. A few days ago, it was revealed that the company is looking to expand its business to the world of cryptocurrencies.
In an official statement, PayPal has confirmed it’s been working on the development of its cryptocurrency capabilities, for which the company has contacted the European Commission, asking them to make adjustments in the EU crypto framework.
PayPal Cryptocurrency Plans
Last December, the European Commission launched the public consultation on building a crypto framework. A number of big tech companies joined the conversation straight away, but PayPal wasn’t one of them. At least until recently, when the company sent an official letter to the EU, explaining its involvement in the Libra project.
Proposed by Facebook, Libra is an ambitious cryptocurrency project that’s getting more and more attention as time goes by. A number of tech giants have already confirmed their involvement with the project, the most recent one being PayPal. However, as explained in the letter to the EU, PayPal only has a non-binding deal with Libra.
Since the project’s inception, PayPal has taken unilateral and tangible steps to further develop its capabilities in this area.PayPal explaining its involvement in the cryptocurrency world.
PayPal’s cryptocurrency plans aren’t only focused on Libra. In fact, the company seems to care more about developing its own crypto capabilities rather than letting the Facebook-launched project lead the way.
Three Proposed Changes to EU’s Cryptocurrency Framework
The PayPal cryptocurrency projects are going to develop more smoothly if the European Commission agrees to this company’s propositions. In its letter, PayPal mentioned three major propositions, starting with the one concerning a unique set of rules for the EU’s cryptocurrency framework.
This way, all the companies involved in the cryptocurrency business would be properly regulated by the EU, leaving no room for any accidental mistakes and deliberate foul play. PayPal also called for the implementation of “a risk-based approach” which would go in line with global standards, as well as the current EU AML regulation. This is something that was also recommended by the Financial Action Task Force (FATF).
PayPal’s third major suggestion was for the European Union to remain tech-neural in order to enable healthy competition in this “fast-evolving space.”
Big Tech Companies to Embrace Blockchain
By announcing its decision to develop its cryptocurrency capabilities, PayPal has joined a line of big technology companies involved with cryptos/blockchain. Previously, Google did pretty much the same. By starting a Theta partnership, Google got on the cryptocurrency bandwagon.
Even before that, we’ve witnessed Facebook making its breakthrough to the cryptocurrency universe with its proposed digital currency Libra. If everything goes according to the plan, Facebook’s crypto could see the light of the day by the end of the year.