PayPal Introduces Cryptocurrency Hub for PYUSD Users

Soon after unveiling the dollar-backed stablecoin PayPal USD (PYUSD), the payments giant PayPal updated its terms and conditions to include Cryptocurrencies Hub, a feature that enables users to hold and interact with Bitcoin and other cryptocurrencies in their PayPal accounts.

The most recent PayPal terms and conditions outline the requirements that crypto users must meet to use the platform for cryptocurrencies.

PayPal Cryptocurrenies Hub as explained in terms and conditions. Source: PayPal

The Cryptocurrency Hub is essential to PayPal’s transformation into a crypto-inclusive platform. The company claims that the service will enable the sale and procurement of cryptocurrencies.

“Any balance in your Cryptocurrencies Hub represents your ownership of the amount of each Crypto Asset shown. You will not hold the digital Crypto Assets themselves in your Crypto Asset balance.”

In addition, it will enable purchases to be paid for via PayPal, with funds retained after the sale of cryptocurrencies.

The Cryptocurrency Hub will also be essential for converting PYUSD to other cryptocurrencies. PayPal clarified further:

“You can only use your Cryptocurrencies Hub as part of your Balance Account by accessing it through your personal PayPal account. If you are a Hawaii resident, we will not allow you to establish a Cryptocurrencies Hub at this time.”

However, not all PayPal users will have access to the new feature, as the company will determine individual access.

For Cryptocurrencies Hub eligibility, a PayPal user must have “a personal PayPal account and a Balance Account in good standing.”

In addition, PayPal will verify the required identifying information provided by users, such as their name, physical address, date of birth, and taxpayer identification number.

Upon release, Cryptocurrencies Hub will be directly linked to the user’s PayPal account and accessible using the user’s existing credentials.

The inauguration of PayPal USD polarized the cryptocurrency community, as contradictory speculations about its impact on cryptocurrencies dominated the conversation.

The community warns that while many believe PYUSD will expedite Ether’s mainstream adoption, it could also portend trouble for decentralization and individual control of assets.

Several smart contract auditors noted that the PYUSD smart contract contains the “freeze funds” and “wipe frozen funds” functions, which, according to them, are canonical examples of centralization attack vectors in Solidity contracts.