Payment processing company PayPal is further integrating cryptocurrencies into its services.The payments giant has now started converting cryptocurrencies to USD (also known as off-ramp) for US customers.
According to a blog on the PayPal website, the off-ramp service increases access to digital currencies “by simplifying the exchange of cryptocurrencies with wallets, dApps, and NFT marketplaces.” This will allow customers to use cryptocurrencies more easily.
PayPal embraces cryptocurrencies
in a statement released MondayPayPal announces fiat off-ramp for US customers
“With the addition of Offramp, US cryptocurrency wallet users will now be able to convert their cryptocurrencies to USD directly from their wallet to their PayPal balance, allowing them to shop, send, store, or transfer money to their bank or debit card. ” says PayPal.
The company did not say when this feature would roll out in other regions.
The off-ramp integration is another important milestone in PayPal’s long-term and continued cryptocurrency adoption. The company first launched the ability to purchase cryptocurrencies in 2020, and later introduced a “checkout with crypto” feature. This feature allows you to convert cryptocurrencies to fiat upon purchase.
Most recently, in August, the company launched its own stablecoin, PayPal USD (PYUSD), which is pegged to the value of the US dollar.
PayPal USD controversy
PayPal’s dollar-pegged stablecoin is not without controversy. The cryptocurrency’s launch was halted in February due to increased scrutiny from regulators.
Much of that scrutiny focused on Paxos, PayPal’s stablecoin partner. The SEC has launched an investigation into Paxos. February Because of its relationship with Binance. Paxos will issue his BUSD, a dollar-pegged stablecoin on the Binance network.
This investigation was enough to throw a spanner in the works, but stopped short of halting the PYUSD launch indefinitely. PYUSD was launched on August 7, six months later than planned.
This is not the end of the controversy surrounding PYUSD. As MetaNews previously reported, PayPal USD cannot be used to directly purchase items. When a consumer uses her PYUSD to purchase a product, the coins are first converted to USD.
While casual users may think this is a meaningless distinction, the paradoxical view is that PayPal USD’s limitations make it more of a marketing gimmick than a true stablecoin. about it.
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MetaMask off-ramp
PayPal is not the only major company to recently announce a phase-out of cryptocurrencies.
Last week, crypto hot wallet Metamask announced the launch of a sales feature that allows users to “easily convert their crypto to fiat.”
Unlike PayPal, which is limited to the US market, MetaMask is available in the US, UK, and parts of Europe. There are three supported currencies: US Dollar, Euro, and British Pound.
For now, this service is limited to ETH on the Ethereum mainnet only. This will change in the future. MetaMask says it has “plans to expand to native gas tokens on layer 2 networks soon.”
Metamask has gone even further addition: “Ensuring users have a free way to get in and out of cryptocurrencies is important, and we hope these options will make Web3 accessible to more people.”
