Key takeaways:
- Soon after introducing the stablecoin PayPal USD, PayPal changed its terms of service to add a feature called Cryptocurrencies Hub.
- For currency conversions between PYUSD and other crypto assets, the Cryptocurrencies Hub will be essential.
Soon after introducing the stablecoin PayPal USD (PYUSD), which is pegged to the dollar, the world’s largest payments company PayPal changed its terms of service to add a feature called Cryptocurrencies Hub, which enables users to store and deal with Bitcoin and other cryptocurrencies in their PayPal accounts.
The most recent version of PayPal’s terms and conditions outlines the requirements for customers who want to use the network for cryptocurrency. For PayPal to reposition itself as a crypto-inclusive platform, the Cryptocurrency Hub is essential.
According to the business, the service will enable the buying and selling of cryptocurrencies. Additionally, it will make it easier for PayPal users to pay for goods with the proceeds from the sale of their cryptocurrency holdings.
For currency conversions between PYUSD and other crypto assets, the Cryptocurrencies Hub will be essential. PayPal clarified further:
“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.”
However, the new tool won’t be available to all PayPal customers, as the corporation will choose who has access to it. To begin with, a PayPal user must have “a personal PayPal account and a Balance Account in good standing” in order to be eligible for Cryptocurrencies Hub.
Additionally, PayPal will confirm the necessary identifying data supplied by users, which includes name, physical address, date of birth, and taxpayer identification number:
“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.”
As soon as the feature is available, Cryptocurrencies Hub will be directly linked to the users’ PayPal accounts and accessible with their current login information.
The introduction of PayPal USD sparked conflicting rumors about its influence on cryptocurrency, dividing the crypto community. While many believe that PYUSD may hasten the adoption of Ether by the general public, the community warns that it may potentially pose problems for decentralization and individual asset control.
The “freezefunds” and “wipefrozenfunds” functions, which some smart contract auditors argue are textbook instances of centralized attack vectors in Solidity contracts, are present in PYUSD’s smart contract.
The Chief Technologist of Ripple has stepped in to resolve the conflict by describing the security measures taken by PayPal’s stablecoin.
