Skip to content

The declared co-founder believes that PayPal and cryptocurrencies are a “strange combination”.

June 28, 2020

According to recent rumors, PayPal may be preparing to work with crypto assets, although Decred’s co-founder, Jake Yocom-Piatt, is unsure of the accuracy of these rumors.

“It’s hard to say whether PayPal will soon accept cryptocurrencies, it’s rumors or not,” Yocom-Piatt told Cointelegraph via email when asked about these rumors.

This combination doesn’t seem to fit

Recent news showed that PayPal wanted to fill cryptocurrency and blockchain-related jobs, while rumors circulated that the platform would integrate crypto assets.

The declared co-founder believes that PayPal and cryptocurrencies are a “strange combination”.The declared co-founder believes that PayPal and cryptocurrencies are a “strange combination”.

Although this addition would provide better access to digital assets, Yocom-Piatt added that such a move would not match the PayPal system. “In particular, it is known that PayPal denies its users access to funds that have been lawfully earned on its platform without being justified.”said.

“The fact that user funds are restricted in this way is something cryptocurrencies should avoid, which makes this integration, when it is really going on, a strange combination.”The co-founder of Decred noted.

A report a few months ago showed difficulties in making payments by PayPal users. Transactions were marked and restricted due to different conditions. “PayPal, along with its subsidiary Venmo, uses a system that automatically highlights keywords in the payment note field that could indicate a violation of US sanctions,” said Slate in a February 2020 article.

The scene around the term referred to remains a difficult mystery, since security and protection remain as important as currency freedom. Although this has nothing to do with money, a similar situation has affected the crypto-youtuber community in recent months, as many of the main channels have been banned due to their content labeling.

Cryptocurrencies are the opposite

Bitcoin, the pioneering commodity of cryptocurrencies, essentially serves as a method for the transfer and storage of value outside of state control. Users can retain and transfer the value themselves without the authorities directly influencing the value of global non-governmental assets.

Vice versa, Payment services like PayPal use government currencies within controlled parameters.

“A fiduciary payment platform known to deny access to funds that would provide support for cryptocurrencies that are recognized as having no money restrictions.”Yocom-Piatt said after commenting that cryptocurrencies and PayPal are a strange combination.

The future will show whether PayPal will add this new asset class or not.