United States – As the famous US global payment service PayPal has entered the world of cryptocurrency, many customers are asking why it does not accept Ripple’s XRP. Currently, PayPal accepts over 26 million merchants and the leading digital asset with the best mainstream exposure is Bitcoin.
Over 346 million PayPal users now have the option to use Bitcoin in trading. Despite Ripple’s recent growth, the company needs to catch up to receive recognition from PayPal.
Currently, PayPal users can only hold Bitcoin and Litecoin cryptocurrencies. However, they cannot transfer it to other accounts on and off PayPal. Many critics claim that the company will remain tight-lipped on the matter.
Crypto enthusiasts wonder why PayPal has skipped the fourth largest cryptocurrency now that it accepts other virtual currencies, such as Ethereum, Bitcoin Cash, Litecoin, and Bitcoin.
According to the latest interview, PayPal relies on the Securities and Exchange Commission (SEC) to determine which virtual assets to support. PayPal is looking for custody and trade additional tokens. Since the global payment service provider needs to expand more products to customers, they need to stay customer-driven, especially when it comes to security.
For instance, controversy circles around Ripple’s XRP after the US regulatory system consider the digital asset a threat to security. Unlike XRP, Bitcoin, Bitcoin Cash, Litecoi, and Ethereum have essential differences from XRP.
Will this restriction be relaxed in the future? According to some crypto critics, there’s a huge possibility that PayPal will support XRP in transactions and withdrawals anytime soon. The reaction of crypto enthusiasts has been mixed since some have publicly bashed PayPal for not giving users access to XRP.
In terms of services, PayPal and cryptocurrencies mirror features available on the rival platforms RobihHood and Square. These two companies are one of the most prominent advocates of cryptocurrencies.
In 2019, Square already supported cryptocurrency and allowed users to withdraw Bitcoins. Regarding RobinHood, its headquarters confirmed that they would soon send a green signal for Bitcoin withdrawals.
Fundamentally, Ripple’s XRP and PayPal sound more conflicting than its partnership with Bitcoin. Once Ripple gained recognition from PayPal, it can be a giant leap in Ripple breaking out of its niche. Despite many concerns, it appears that PayPal will only support XRP if it is considered a currency, not security, in the United States.
Many businesses have been somewhat anticipating PayPal’s approval of Ripple since many global banks are now using XRP for cross-border money transfers.