Cryptocurrency

PayPal sent letter to the European Union, which confirms developments with cryptocurrencies

PayPal addressed a letter to the European Commission in march of this year confirming that it works with the aim of offering services related to the cryptocurrencies to its more than 300 million users. In your cominunicación the company also shows its support for the establishment of a regulatory framework “harmonized” for the sector of the crypto assets.

In the document, the company detailed that it started its development in the area of the crypto assets since I joined the Association a Pound in 2019. He also notes that since he took the decision to participate in the Association of Libra, continues to develop its capabilities in the area of the cryptocurrencies, a sector that believes that can help achieve greater financial inclusion.

PayPal has taken unilateral measures and tangible to further develop its capabilities in this area [technology of chains of blocks], and therefore, without questioning the value of the project [Pound Facebook], took the decision not to participate in the Association Pound to continue to focus on the advancement of our current mission and business professionals to democratize access to financial services.

Letter from PayPal to the European Commission.

With this statement the company confirms that the information is not official, since last June, they claim that PayPal’s subsidiary Venmo will offer services with cryptocurrencies. It is also in evidence that the company is not skeptical towards the technology of the strings of blocks, as it was believed in the past due to certain statements connected with the firm.

Regulation harmonica for Europe

The letter addressed to the European Commission also reveals the company’s support regarding the establishment of a regulatory framework “harmonized” for the sector of the cryptocurrencies. In addition to requests the european body that strives to develop a regulatory framework that supports innovation and competition. At the same time, are asked to take into account that the industry encourages new opportunities for merchants and consumers.

We have a great interest in how these technologies [blockchain] can be used to promote transparency. As these technologies continue to evolve, we believe that careful regulation that will foster innovation while promoting clarity, can help the industry to grow and prosper. In this regard, PayPal would support a harmonised approach in all the markets of the EU about the requirements applicable to the licenses or authorizations.

Letter from PayPal to the European Commission.

PayPal told the European Commission that the best regulatory approach to the sector of the cryptocurrencies in Europe, will be the one that supports innovation and promotes clarity. Source: pxhere.com

The document also sought to establish a clear set of definitions on the various activities that involves the sector the crypto assets. On this, adds that the lack of clarity with respect to regulatory measures creates uncertainty in the industry, which subsequently creates disincentives for companies to participate actively.

The plans of Facebook to launch their own criptomoneda, generated concern in the European Commission, which undertook a research on “behaviors potentially anti-competitive” part of the Association Pound. At that time, the agency launched a questionnaire as part of their exploration work.

Although PayPal was one of the first members who pledged last year, with the project Pound of Facebook, was subsequently withdrawn, along with several other important actors, such as reported Breaking News.

Shortly after, the CEO of PayPal, Dan Schulman, said that the company was working on projects associated with cryptocurrencies and blockchains, has outlined Breaking News. However, at that time, Schulman did not provide details on those projects.

In march of this year, the CTO of the company, Sri Shivananda, referred to the cryptocurrencies and the need that they were used as a means of payment, rather than as speculative assets in order to encourage their adoption.

About the author

Belinda Carey

Belinda Carey

A finance girl by education, Belinda has been drawn to cryptocurrencies ever since Bitcoin first emerged in the 2009. Nearly a decade later, Belinda is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies.

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