PayPal – arguably the largest digital payment platform in the world – has some good news for crypto holders. The company announced that it was upping its weekly crypto spending limit to approximately $100,000. The firm has stated that it is also doing away with its annual $50,000 limit.
PayPal Customers Can Now Buy Six-Figures Worth of Crypto
Prior to this move, PayPal customers could only purchase as much as $20,000 in crypto every seven days. Now, it looks like that number has gone up five times. In a statement, PayPal explained:
We have been actively engaging with our customers to better understand their needs to help ensure we are providing a trusted and secure platform to buy, hold, sell and checkout with cryptocurrency.
Additional words came by way of Jose Fernandez de Ponte, the vice president of blockchain with PayPal. He explained in an interview:
These changes will enable our customers to have more choice and flexibility in purchasing cryptocurrency on our platform.
PayPal initially announced in October of last year that it would be offering cryptocurrencies and related digital payment services to its customers. At the time, bitcoin – the world’s largest and most popular virtual currency by market cap – was trading for about $10,000 per unit, though following the news, the currency struck a new mark of $13,000, thereby rising roughly $3,000 in a rather short period.
The maneuver proved to be quite significant amongst average users, as roughly 20 percent of customers began purchasing cryptocurrencies within two months of their availability on the platform. It was later argued that PayPal was going to be one of the biggest companies out there to push a crypto agenda.
But while the news was certainly well received amongst both investors and financial heads alike, the platform stirred quite a bit of controversy when questions regarding ownership of crypto began to appear. PayPal initially enforced regulatory tactics that prevented users from moving their digital assets to other platforms or wallets. Thus, while you could certainly buy currencies like bitcoin, Ethereum, Litecoin and bitcoin cash through the company, you were inherently forced to keep it there.
The Company Implements the Right Changes
This created serious problems amongst traders, who accused PayPal of running a highly centralized operation. They stated that in not being allowed to move their assets, they ultimately had little say regarding what could be done with them, and thus their power and ownership over their own cryptocurrencies was in question. In the end, they felt it was PayPal that always remained in control.
But PayPal took these issues to heart, and just a few months ago, announced that it was ending this program. Fernandez de Ponte was the man to announce the change, and while a specific date has not quite been set, he says that users can look forward to this latest “moving” feature rather soon.