In the face of the huge demand for cryptocurrencies from PayPal users, the company was compelled to allow Bitcoin and Ethereum withdrawals.
During the Coindesk Consensus Conference, Jose Fernandez da Ponte, PayPal’s head of cryptocurrency, announced that PayPal will soon allow users to withdraw supported cryptocurrencies, including Bitcoin, Ethereum, and more, from their PayPal accounts.
Currently, PayPal does not allow withdrawals. With PayPal’s latest announcement, PayPal has made it clear that they will support third-party wallet transfers soon. It also means that Venmo users will soon be able to send and receive cryptocurrencies from their PayPal crypto wallets. Exactly when this feature will be added on PayPal is still shrouded in mystery as Ponte did not disclose any further details.
Why did PayPal Decide to Allow Third-party Withdrawal?
PayPal’s decision to allow withdrawals is likely a result of the huge demand for its users. In fact, Dan Schulman, PayPal’s CEO said in an interview with TIME Magazine in late April that the demand for cryptocurrencies on PayPal has been far more than what they had expected.
“Demand on the crypto side has been mulitple-fold to what we initially expected. There’s a lot of excitement.”
Schulman further said that PayPal has been considering adding cryptocurrencies for many years but they had to wait due to high volatility and associated risks. His exact statement was:
“We’ve been looking at digital forms of currency and DLT for six years or so. But I thought it was early, and I thought the cryptocurrencies at the time were much more assets than they were currency. They were too volatile to be a viable currency”