The world’s largest payments company, PayPal, recently introduced the stablecoin PayPal USD (PYUSD), which is pegged to the dollar. In an update to its terms and conditions, PayPal included a feature called Cryptocurrencies Hub that lets users store and deal with Bitcoin and other cryptocurrencies in their PayPal accounts.
The most recent version of PayPal’s terms and conditions outlines the requirements for customers who want to utilize the network for cryptocurrency.The Cryptocurrencies Hub service, according to the business, will enable cryptocurrency sales and purchases.Additionally, it will make it easier for PayPal users to pay for goods with the proceeds from the sale of their
The Cryptocurrencies Hub will also be crucial to convert between PYUSD and other crypto assets. PayPal further clarified,“Any balance in your Cryptocurrencies Hub represents your ownership of the amount of each Crypto Asset shown. You will not hold the digital Crypto Assets themselves in your Crypto Asset balance.”
The new tool won’t be available to all PayPal customers, though, as the corporation will choose who has access to it.To begin with, a PayPal user must have “a personal PayPal account and a Balance Account in good standing” in order to be eligible for Cryptocurrencies Hub.PayPal will also confirm the necessary identifying information, which includes the users’ names, addresses, dates of birth, and taxpayer identification numbers. “You can only use your Cryptocurrencies Hub as part of your Balance Account by accessing it through your personal PayPal account. If you are a Hawaii resident, we will not allow you to establish a Cryptocurrencies Hub at this time.”The company added.
As soon as the feature is available, Cryptocurrencies Hub will be directly connected to the user’s PayPal account and accessible with their current login information.
The introduction of PayPal USD sparked conflicting rumors about its influence on cryptocurrency, dividing the crypto community.While many believe that PYUSD may hasten the adoption of Ether by the general public, the community warns that it may potentially pose problems for decentralization and individual asset control.The “freezefunds” and “wipefrozenfunds” functions, which some smart contract auditors argue are textbook instances of centralized attack vectors in Solidity contracts, are present in PYUSD’s smart contract.