PayPal, a leading payment system with over 400 million active accounts, reports the addition of cryptocurrency to its P2P payment features, which may accelerate the mainstream adoption of digital assets.
New Features of PayPal
On Monday, the company unveiled PayPal Links — a personalized one-time link that can be shared via text, email, or chat. The feature will launch first in the US before expanding to the UK, Italy, and other international markets later this year. In the near term, users will be able to send cryptocurrencies and stablecoins directly through PayPal’s P2P feature to both PayPal and Venmo users, as well as to compatible digital assets.
Development of P2P Payments with Cryptocurrencies
Cryptocurrencies like Bitcoin and Ether will be supported in the new feature. PayPal emphasizes that personal transfers made through Venmo or PayPal will not trigger 1099-K tax reporting, as they are generally exempt. These new capabilities are being introduced under PayPal World, the company’s interoperability framework designed to connect wallets and payment systems across borders.
Expert Opinions on Stablecoins
Despite positive feedback regarding the integration of cryptocurrencies into P2P payments, not all experts share the optimism. For instance, the Bank for International Settlements warns that stablecoins fall short on key monetary principles, asserting they act more like financial assets than true currency.
The introduction of cryptocurrency to PayPal's P2P payment system reflects market trends in digital assets and users' needs for convenient ways to transfer funds. However, regulatory concerns and the stability of stablecoins remain pertinent issues.
