on the crypto
Paypal has just announced the extension of its cryptocurrency services to Luxembourg. The financial services tech giant intends to broaden its offering to make itself even more attractive. And to do that, it has just made it possible to buy, sell and hold some of the world's largest cryptocurrencies on your Paypal accounts.
This news further reinforces the notion that the cryptocurrency market is maturing. Brazil is planning to allow crypto payments, Japan is regulating algorithmic stablecoins, and now Luxembourg is allowing cryptocurrencies to gain a foothold in Europe! Here's everything you need to know about this Paypal announcement.
Paypal continues to expand its cryptocurrency services worldwide
While this news is nothing short of unheard of in Europe, Paypal already offers cryptocurrency services around the world. The company started its adoption campaign in 2020 starting with the US, followed by the UK in 2021.
However, the emergence of a service of this magnitude in Europe is more than encouraging news. Europe has been reluctant to incorporate Bitcoin and company into its financial system. The fact that Paypal has managed to pull off this feat is therefore particularly noteworthy.
It must be said that Luxembourg is a prime candidate for Paypal, which has its headquarters in the country. There is no doubt that this fact has facilitated the incorporation of new services in the country. This first step is therefore likely to serve as an example for the other countries of the European bloc in the future!
Jose Fernandez da Ponte, General Manager and Senior Vice President of Paypal, said:
The addition of Luxembourg is an important step in Paypal's mission to make digital currencies more accessible. We are committed to continuing to work closely with regulators and policy makers in Luxembourg to make significant contributions to shaping the role digital currencies will play in the future of global finance and trade.
MiCA: the European regulation that will govern cryptocurrencies
Markets in Crypto-Assets is the name given to the project by the Economic Policy Committee of the European Union. Its main objective is to regulate service providers offering crypto-assets in the EU.
While this project may heavily regulate the cryptocurrency market, it will allow payments to spread across Europe and cryptocurrency service companies to emerge on the continent.
Stable coins, for example, will get special treatment. They will be subject to intense supervision by the European Securities and Markets Authority. The reason stablecoins are so critical is partly due to scandals like TerraUSD, which was sold as safe but fell heavily due to its flawed algorithmic system.
Incidentally, Japan is also about to implement a whole series of regulations on algorithmic stablecoins to protect its investors. Sadly, these regulations appear to be necessary for the democratization of Bitcoin and all other cryptocurrencies.
Why is Paypal's expansion of services good news for the cryptocurrency world?
By finding their place among the big financial services, cryptocurrencies like Bitcoin and Co. gain credibility. This credibility is essential for the future of the market.
A currency is first and foremost a medium of exchange of value that relies on the trust it generates. The more crypto-assets are recognized and regulated, the more weight and legitimacy they will have in trading on platforms such as Bitcoin system.
Cryptocurrency on Paypal means potentially higher demand with higher trading volume. This will certainly lead to an increase in the value of all cryptocurrencies, starting with Bitcoin.
Google is also planning to launch its cryptocurrency service in partnership with Coinbase. Companies understand the interest in cryptocurrencies and don't seem to want to miss the boat.