PayPal Embraces Crypto, Igniting Market as Mainstream Adoption Inches Closer

CoinDesk first reported PayPal was planning a move into crypto in June, citing anonymous sources.

A month later, CoinDesk reported the Paxos exchange had been selected to support PayPal in its crypto endeavors.

Beginning in early 2021, PayPal customers will be able to instantly convert their selected cryptocurrency balance to fiat currency, with certainty of value and no incremental fees, PayPal said.

"In effect, cryptocurrency simply becomes another funding source inside the PayPal digital wallet, adding enhanced utility to cryptocurrency holders, while addressing previous concerns surrounding volatility, cost and speed of cryptocurrency-based transactions," PayPal said.

Not your keys....As bullish for the bitcoin market as this announcement has proven to be, an initial review of PayPal's crypto services terms underscores that a go-it-slow mindset still pervades.

"You own the Cryptocurrency you buy on PayPal but will not be provided with a private key," PayPal wrote in a help post.

While users will not be liable for "Unauthorized" crypto transactions on their account, PayPal appears to have no interest in mitigating sloppy private key management.

Keeping keys away from customers ensures PayPal can maintain a tighter grip on how customers wield BTC, BCH, LTC and ETH.Crucially, users will not be allowed to send their crypto around.

"You can only hold the Cryptocurrency that you buy on PayPal in your account. Additionally, the Cryptocurrency in your account cannot be transferred to other accounts on or off PayPal," the help page says.

Update: Added details to introductory paragraphs and a section detailing the strict limitations on what PayPal users can do with their crypto.