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1/11
People are bothered by the fact PayPal won& #39;t allow deposits or withdrawals of their crypto:
1. Chances are that as they expand their infrastructure they& #39;ll allow deposits/withdrawals right now they want to profit on spread and need to get robust AML in place for transfers.
People are bothered by the fact PayPal won& #39;t allow deposits or withdrawals of their crypto:
1. Chances are that as they expand their infrastructure they& #39;ll allow deposits/withdrawals right now they want to profit on spread and need to get robust AML in place for transfers.
2/11
2. Unlike some are claiming its just an index price, the fact that PayPal is partnered with Paxos and got a BitLicense shows that PayPal will be physically holding the crypto.
2. Unlike some are claiming its just an index price, the fact that PayPal is partnered with Paxos and got a BitLicense shows that PayPal will be physically holding the crypto.
3/11
3. PayPal is not an investment entity and currently (surprisingly) has no seeming interest in being one. They don& #39;t want customers to get too speculative on assets, as it could get regulators breathing down their backs.
3. PayPal is not an investment entity and currently (surprisingly) has no seeming interest in being one. They don& #39;t want customers to get too speculative on assets, as it could get regulators breathing down their backs.
4/11
4. Most of the money for entities in crypto is made from payment processing, purchasing and selling right now, not transfers.
5. Since they offer cash settlement for merchants they need their own robust holdings before opening flood gates.
4. Most of the money for entities in crypto is made from payment processing, purchasing and selling right now, not transfers.
5. Since they offer cash settlement for merchants they need their own robust holdings before opening flood gates.
5/11
6. They are well aware that Coinbase is worth $10B - $15B, mostly from purchasing, commerce payments and custody.
They& #39;ll come after that aggressively but, they need the infrastructure.
6. They are well aware that Coinbase is worth $10B - $15B, mostly from purchasing, commerce payments and custody.
They& #39;ll come after that aggressively but, they need the infrastructure.
6/11
If you& #39;ve never grown a large fintech business, I understand the critique.
Ramping up customer support to educate and support 300M users and 26M merchants on new features is no small task.
If you& #39;ve never grown a large fintech business, I understand the critique.
Ramping up customer support to educate and support 300M users and 26M merchants on new features is no small task.
7/11
Neither is maintaining infrastructure for secure, reliable chain communication, and dealing with the regulatory nightmare of Bitlicenses, multi-state crypto regulation, and securities laws.
Neither is maintaining infrastructure for secure, reliable chain communication, and dealing with the regulatory nightmare of Bitlicenses, multi-state crypto regulation, and securities laws.
8/11
If this was just a pilot PayPal could have rolled it out in crypto friendly countries, or to limited users, or as opt-in for merchants and kept those volumes lows.
They could have reduced their headaches, and regulatory burden.
If this was just a pilot PayPal could have rolled it out in crypto friendly countries, or to limited users, or as opt-in for merchants and kept those volumes lows.
They could have reduced their headaches, and regulatory burden.
