@raucao I don’t have access to the bitcoin side of PayPal, but I know there is specifically no ability to send coins out (or in). You can only buy from PayPal, and then sell it back to PayPal. It’s purely a paper btc for price exposure at the moment.
@htimsxela Ugh, like Revolut. What a scam.
@raucao I expect that they built it in that way to lower their costs of regulatory compliance (ie they don’t need to expand aml/kyc scope to include monitoring btc/etc transactions). Perhaps in the future they’ll expand capabilities, but I expect it’ll still be freedom restrictive (ie, in line with PayPal’s current policies).
@raucao are you sure about that? i feel sure i heard that there is no deposit or withdraw function going to be included (so it's purely price exposure, effectively, although i think you'll be able to pay merchants, but it'll automatically convert to dollars .. or something).
First, it's price exposure, like e.g. Revolut.
Second, interesting detail; they hold a NY bitlicense, and that apparently means they need to be full reserve - this is something I heard, not something I personally confirmed, but I heard that Paxos(?) are handling bitcoin for them, so it could nominally be of significance, in that specific sense.
@waxwing @htimsxela Yeah, so they just purchase a bunch of BTC on some OTC desk and have it sent directly to Paxos. Meaning they didn't have to implement any bitcoin-related software so far. I hope this is just for them to get their feet wet, and have their developers and ops learn more about bitcoin, so they can actually implement withdrawals soon.
It's an ironic outcome: the only thing that "fiat" financial firms ever end up doing with bitcoin is letting users "take a punt on it" - which is exactly the essence of the criticism they've always had of it - that's it's pure 100% speculation.
This narrative played out very hard in 2017.
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