PayPal will allow converting cryptocurrency into fiat money

The international electronic payment system PayPal has added the ability to convert cryptocurrencies into dollars. From now on, users can make transfers directly through wallets to the accounts of the payment system’s users, after which the funds can be used for purchases or transfers to bank cards.

The feature is already available for the MetaMask Ethereum wallet, decentralized applications, and NFT marketplaces. Earlier, PayPal has already launched a fiat cryptocurrency purchase feature supported by MetaMask and hardware crypto wallet manufacturer Ledger. According to PayPal representatives, other companies will soon join the initiative.

Other Web 3.0 developers can also contact PayPal and add the conversion function to their platforms. In addition, the payment system will provide tools for security control, fraud prevention, chargebacks, and dispute resolution, the company representatives emphasized.

PayPal added support for cryptocurrencies back in 2020 and has continued to increase its presence in the digital asset sector since then. In May, PayPal introduced $ 50,000 insurance for consumer crypto payments, and in August, it launched its own stablecoin PYUSD on the Ethereum blockchain, which has already been listed on Kraken, Huobi, and Coinbase. At the same time, according to Nansen analysts, about 90% of the coins are held in the accounts of the issuing company Paxos as of the end of August.

The cryptocurrency community reacted to the launch of PYUSD with a mixed bag of feelings. On the one hand, the entry of such a large company as PayPal into the stablecoin market should contribute to the wider acceptance of digital assets and spark an increase in interest in the industry. On the other hand, such a big event cannot pass by regulators, who will have to speed up their work on creating legislation for stablecoins, which may negatively affect other digital assets.