PayPal’s encryption of cryptocurrencies seems to be growing after the payment provider revealed that it will allow users to withdraw their digital assets to third-party wallets.
The news that was reported by Reuters on Wednesday afternoon, comes just seven months after PayPal first enabled cryptocurrencies on its platform. At the time, the decision was heralded as a major milestone in major recognition of digital assets.
Wednesday’s announcement means that PayPal users will be able to send their cryptocurrencies to other wallets instead of just holding it at PayPal or selling it in a trusted currency for withdrawal. However, neither Reuters nor PayPal specified when the crypto withdrawal function would be supported. If it resembles PayPal’s decision to enable cryptocurrency purchases last fall, the initial launch of third-party wallets could be gradual and local.
PayPal’s crypto embrace seems to be rooted in a clearly defined strategy that sees uses of digital assets growing rapidly over time. As Cointelegraph previously reported, CEO Dan Schulman believes we will see a “huge decline in the use of money” over the next decade, adding:
“All form factor will collapse into the mobile phone. Credit cards as a form factor will disappear, and you will use your phone because a phone can add a lot more value than just tapping your credit card.”
Earlier this month, Schulman also indicated that PayPal’s crypto business is already paying dividends for the company. “We have a huge amount of really great results tactically with our crypto efforts,” he said.