step in to assist people in the United Kingdom to buy, hold and sell four types of digital currencies – Bitcoin, Ethereum, Litecoin and Bitcoin Cash – through its platform, with the aim of strengthening the role they could play in the future. Accordingly, a crypto tab will be added to the company’s platform, which will display real-time currency prices and other educational content that would help people learn more about cryptocurrencies, including the potential risks that are involved.
“The pandemic has accelerated digital change and innovation across all aspects of our lives, including the digitisation of money and greater consumer adoption of digital financial services,” Jose Fernandez da Ponte, PayPal’s vice-president and general manager for blockchain, crypto and digital currencies, said. “Our global reach, digital payments expertise, and knowledge of consumer and businesses, combined with rigorous security and compliance controls provides us the unique opportunity, and the responsibility, to help people in the UK to explore cryptocurrency”
He further noted that the multinational payment company is committed to working with regulators in the United Kingdom and across the globe in order to ‘support and meaningfully contribute” in shaping the role that will be played by cryptocurrencies in the future of global finance.
According to investment expert Laith Khalaf, there are signs that investors are “leapfrogging” traditional savings opportunities and “diving in at the deep end” by investing in digital assets, which is a cause for concern, given the risks associated with their volatile pricing. “An alarming statistic is that 14% of UK crypto buyers funded their purchases using debt, according to figures released by the FCA in June. While many are no doubt using crypto as a bit of harmless fun with small amounts of money they can afford to lose, some consumers are at risk of getting sucked in and spat out by the crypto craze,” the head of investment analysis at AJ Bell said.
Therefore, he pointed out that PayPal’s presence is encouraging since it is a high-profile, publicly listed company, which is already subject to regulatory scrutiny.
