Paypal has unveiled a new feature called Cryptocurrencies Hub. This comes after the payment giant launched its PayPal USD, a dollar-backed stablecoin. The Cryptocurrencies Hub functionality lets PayPal users hold and interact with different cryptocurrencies in their accounts.
But what are the underlying terms and conditions for using Cryptocurrencies Hub?
We have unmasked the lowdown terms and conditions of the Cryptocurrencies Hub, including features, supported crypto assets, and how to use funds from sold crypto assets.
Who Can Use Cryptocurrencies Hub?
Per PayPal’s statement, having a PayPal personal account and account balance in good standing are prerequisites for using Cryptocurrencies Hub. Further, PayPal must verify all the identification data you provide.
PayPal users can only pay using cryptocurrency if their purchase qualifies for checkout with crypto. This could be an edge for merchants already accepting cryptocurrency payments on their websites, including online casinos.
You can pay using Bitcoin or other cryptos to buy a new computer, or even play online pokies and other casino games at selected casinos. If you find online slots fun, here’s a list of real money online pokies sites in Australia. These sites are listed based on payment methods, security, deposit bonuses, and free spins criteria.
Cryptocurrencies Hub at a Glance
Here are key terms and conditions for using Cryptocurrencies Hub as outlined by PayPal:
- To use Cryptocurrencies Hub, you must have a personal PayPal account and a balance account in good standing.
- PayPal will verify all the necessary identification data you provide.
- PayPal will automatically link Cryptocurrencies Hub to your account upon successful verification and access it using your account login credentials.
- After establishing the Cryptocurrencies Hub, you can only buy, sell, receive, convert, or hold a crypto asset balance.
- Cryptocurrencies Hub balance represents your ownership of the amount indicated for each crypto asset.
- PayPal users cannot hold digital crypto assets in their crypto asset balance. Paxos Trust Company is responsible for providing custody, trade, and transfer services on behalf of PayPal.
- To close Cryptocurrencies Hub, you must close your balance account.
- If you engage in some restricted activities, PayPal may limit your cryptocurrency engagement activities and close or terminate your account.
Cryptocurrencies Hub Features
Although some or all may be unavailable in some U.S. regions, below are the key features of Cryptocurrencies Hub:
1. Buying Crypto Assets
You can use your Balance Account balance, bank account linked to Paypal, or Debit card to buy crypto assets. PayPal indicates the potential amount of crypto assets you will receive for a certain amount before allowing you to make a purchase.
The prices may vary from time to time because of the inherent volatile nature of cryptocurrency. The price of PayPal’s USD stablecoin will remain constant–$1.00 per order. Obtaining a cryptocurrency license is critical if you’re a merchant or looking to start a business that accepts cryptocurrency payments.
2. Holding Crypto Assets
The balance of crypto assets in your Cryptocurrencies Hub represents the digital currency you own. PayPal holds your crypto assets in one or more omnibus accounts and does not use the held assets to meet any of its mandated services. The value of your held assets will be shown against each asset type’s prevailing U.S. dollar value.
3. Selling Crypto Assets
PayPal shows the prevailing market value of the crypto asset you want to sell. The price of PayPal USD remains constant at $1.00 per order.
PayPal will execute the sale of your crypto asset once you confirm the transaction. Remember, the transaction is irreversible. Once the transaction is complete, PayPal will deposit proceeds from the sale into your Balance Account and send you a receipt.
4. Converting Cryptos
You can only convert crypto assets into PayPal USD (PYUSD) or PYUSD to different crypto assets. The first step of converting cryptos is selling them for U.S. dollars, and proceeds are deposited into your Balance Account.
The amount deposited into your Account Balance is then used to purchase your selected crypto asset. If a subsequent purchase leg bounces after a successful sale leg, the sale leg proceeds will remain in your Balance Account.
Conversion transactions are irreversible, and PayPal will notify you if your conversion fails to materialize. You’ll receive two receipts for a successful conversion, the sale and purchase legs.
5. Sending Crypto Assets
PayPal users can use the Cryptocurrencies Hub to send crypto assets to other digital asset wallets. You can send crypto assets to another PayPal account or an external digital wallet. You must confirm the recipient details before sending them crypto assets, as PayPal will not be responsible or liable for any losses resulting from incorrect details.
6. Receiving Crypto Assets
You can receive crypto assets from another PayPal Cryptocurrencies Hub account or an external digital wallet. Other users can send you crypto assets via your username, email address, or phone number.
You can only receive crypto assets that PayPal supports, like PYUSD, Bitcoin, Litecoin, Bitcoin Cash, and Ethereum. Other cryptocurrencies PayPal supports are shown in your Cryptocurrencies Hub.
The Future is Cryptocurrencies Hub
The unveiling of PayPal’s Cryptocurrencies Hub marked a new era in the cryptocurrency landscape. You can use the Cryptocurrencies Hub to buy, sell, send, convert, receive, or hold crypto assets. Cryptocurrencies Hub is subjected to data verification and a personal PayPal account and Account Balance in good standing. These functionalities may be limited or unavailable in some U.S. locations.
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