Paxos will be holding your PayPal's Bitcoin

DooMAD

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Why don't you trust anyone? Have scammers already stolen your crypto?

The whole idea is that it shouldn't require trust. Bitcoin actually works better if you don't trust others to look after your funds for you. The moment you introduce an intermediary, you effectively surrender almost all of the security benefits the protocol has to offer.

Daltonik

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The company's legal adviser, Dan Burstein, disclosed information about the provision of PAX and BUSD stablecoins, which, according to him, are fully secured with cash and their equivalents, as well as securities of the US Treasury. https://www.paxos.com/a-regulated-stablecoin-means-having-a-regulator/

Quote from: https://twitter.com/PaxosGlobal/status/1417881597479641088

Daltonik

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Bank of America has joined the Paxos Settlement Service, a blockchain platform for securities settlements, which will allow Bank of America to complete transactions on the same day, although the standard process for the US stock market takes two days. https://www.bloomberg.com/news/articles/2021-05-17/bank-of-america-joins-paxos-blockchain-stock-settlement-network?sref=AACmJ2tc

Quote from: https://www.bloomberg.com/news/articles/2021-05-17/bank-of-america-joins-paxos-blockchain-stock-settlement-network?sref=AACmJ2tc

so98nn

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Quote from: bitmover on October 23, 2020, 06:53:29 AM

Quote

PayPal & Paxos Bring Crypto to Millions of Users

[…]

https://www.paxos.com/paypal-paxos-bring-crypto-to-millions-of-users/?utm_medium=email&_hsmi=98015516&utm_content=98015516

Quote from: bitmover on October 23, 2020, 06:53:29 AM

So, after all, PayPal Bitcoin service will just be an integration with an exchange. Your coins will be in Paxos.

I didn't know about that. PayPal is taking some risks here, especially its reputation is on the line.

It would be integration but with hard coding. Let’s not mis-judge Mr. Elon in this regards. All the risk factors might have been already thought by this guy. He is futuristic guy so we can count on the security for sure.

Quote from: bitmover on October 23, 2020, 06:53:29 AM

Exchanges can be hacked. Exchanges are sometimes shady. I don`t trust any of them my bitcoins, and now I see that I wouldn't trust PayPal as well.

So, holding bitcoin in PayPal you are literally holding in Paxos.

PayPal will never compromise their traditional version just because if their new bitcoin integration upgrade. It’s not about exchanger here, it’s about how PayPal will handle it.

I don’t see any issues with PayPal platform.

Honestly this integration could also increase share market for PayPal, more users, more investors and thus adding burden of “Data Integrity”.

It would be surely far secure than exchanges like binance, huobi, and what not.

bitcampaign

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talking about the hacking that happened, I think they must have taken into account the security problems of the users, so I don't think it's too much to respond to problems like this, of course no one wants to be hacked, I think they will solve this problem too, especially paypal also wants to keep the name good company

Shasha80

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I'm sure those who buy Bitcoin on Paypal are mostly newbies who don't understand Bitcoin. If those who already understand Bitcoin
will not buy Bitcoin on Paypal, because we can only make transactions on the Paypal platform. Moreover, holding Bitcoin on Paypal has
risks too, because we don't have a private key. That way we have no control over the Bitcoin we have. But this could be the starting to
make Bitcoin a means of payment for all merchants. In the meantime we have to be patient with Paypal rules, because in the future
there is a possibility that the rules may change.

error08

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Quote from: taufik123 on October 24, 2020, 12:51:57 PM

Quote from: The Cryptovator on October 24, 2020, 04:32:22 AM

-snip- It would be a good move if they allow their user to make deposit and withdrawal, so we can use it on the merchant. Anyway, something is better than nothing, let them do what they want, at least their thought about bitcoin is positive. Because PayPal is the most trusted centralized virtual currency.

Paypal refuses and is reluctant to hand over the customer's key because this is a paypal tactic to limit and prevent losses. If the key is given to the customer and the key is lost, no one can withdraw the crypto.

PayPal states that "Currently, you can only hold, buy or sell cryptocurrency on the platform".
it still in the early phase of development, 'Currently' doesn't mean forever, as an early stage it is okay, people aware of this.
But who knows if they will enable users to buy something from merchants using cryptocurrency someday in 2021 although it should be converted to USD value first.
Not only PayPal or Paxos that don't provide private keys to users, but exchanges also do the same, it is not the perfect place to store your coins, just for trade.

hatshepsut93

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Quote from: The Cryptovator on October 24, 2020, 04:32:22 AM

I am assuming PayPal doesn't want to hold bitcoin due to volatility and that's the reason why store into the exchange.

Why should volatility be a problem to them? PayPal is not investing in Bitcoin, they let their users do it. They don't really care if Bitcoin goes to $100,000 or $1,000 as long as enough people buy and sell it to generate fees, which is the whole point of adopting Bitcoin for PayPal.

Quote from: DooMAD on October 23, 2020, 05:59:19 PM

If they held the coins themselves, PayPal could be hacked. It makes sense from a business perspective to have a "fall guy" to blame and distance yourself from if it all goes tits-up. They know exactly what they're doing.

It also could be cheaper and faster to make a deal with custodial service instead of building the wallet infrastructure from scratch.

Leviathan.007

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Doesn't really matter if paypal crypto is backed by paxos. Even paxos can't really current the safety of your cryptocurrency investments because you are not really holding the private key to your assets. So, there will be always a chance for your account to be hacked. the rule not your keys not your coin exists everywhere, even on paypal. But generally, since paypal is used more than bitcoin, this can be a great positive step forward. This can the even the reason for bitcoin price to break the 13K area.

taufik123

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Quote from: The Cryptovator on October 24, 2020, 04:32:22 AM

-snip- It would be a good move if they allow their user to make deposit and withdrawal, so we can use it on the merchant. Anyway, something is better than nothing, let them do what they want, at least their thought about bitcoin is positive. Because PayPal is the most trusted centralized virtual currency.

For now and according to the information released by paypal deposits and withdrawals will use US dollars and crypto is only traded within paypal. The weekly purchase limit is around $ 10 000 and the limit per 12 month period is around $ 50,000.

Paypal refuses and is reluctant to hand over the customer's key because this is a paypal tactic to limit and prevent losses. If the key is given to the customer and the key is lost, no one can withdraw the crypto.

At least this is the first step towards PayPal adopting bitcoin and implementing its payment system. Maybe when it develops there will be other regulatory changes.

The Cryptovator

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I am assuming PayPal doesn't want to hold bitcoin due to volatility and that's the reason why store into the exchange. Storing bitcoin on a custodial wallet is always risky either it's on PayPal. Who knows if they implement their own custodial or noncustodial wallet for their users. Buying bitcoin on PayPal or via visa/master card and use it on the merchant isn't worth much, at the same time holding BTC on PayPal isn't worthy as well. Rather than better bitcoin hold on the noncustodial wallet. It would be a good move if they allow their user to make deposit and withdrawal, so we can use it on the merchant. Anyway, something is better than nothing, let them do what they want, at least their thought about bitcoin is positive. Because PayPal is the most trusted centralized virtual currency.

Karartma1

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PayPal is starting its adventure in the bitcoin world with Paxos yet they are already exploring how to infiltrate the market. Have you read the following news? PayPal's move was not simple marketing buzz
https://markets.businessinsider.com/currencies/news/paypal-explores-crypto-takeovers-including-goldman-backed-bitgo-bloomberg-2020-10-1029713851

Yogee

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Quote from: Ayiranorea on October 23, 2020, 11:04:46 AM

This is how purse.io had its service offering for Amazon. It is a joint operation, and same as that is the Paypal's partnering with paxos.

Is it? You buy Amazon gift cards using BTC in Purse.io but can you trade these cards like you trade BTC on Paypal or Paxos?

........

Many people want merchants and other platforms to integrate BTC payments.
Paypal partners with Paxos to allow BTC but some people still don't want it.

The dilemma for mass adoption.

It's hard to strike a balance when a decentralized currency meets with a centralized platform.

Sword555

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Only newbies will use paypal. I hope that people will soon understand that paypal may be your entry point to crypto but its much better to store your crypto outside paypal. There are a lot of non-custody soltuions like ownr wallet or coinomi or *name your wallet* that much better storage

TGD

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Quote from: tbct_mt2 on October 23, 2020, 09:26:02 PM

Quote from: bitmover on October 23, 2020, 06:53:29 AM

So, after all, PayPal Bitcoin service will just be an integration with an exchange. Your coins will be in Paxos.

I didn't know about that. PayPal is taking some risks here, especially its reputation is on the line.

Exchanges can be hacked. Exchanges are sometimes shady. I don`t trust any of them my bitcoins, and now I see that I wouldn't trust PayPal as well.

So, holding bitcoin in PayPal you are literally holding in Paxos.

I don't think using any custodial wallet is good decision and with PayPal, people double their risks by use third-party services two times. PayPal has chargeback and your bitcoin will not be directly sent to your wallet address (in custodial or non-custodial wallet, it depends which wallet type you use).

Charge back on PayPal: risky.
Paxos: another type of risky temp storage on exchange.

People don't have full control on their bitcoin with PayPal and Paxos.

Most of the user of PayPal is a beginner or not well educated on BTC so it's better to used a custodial because it's simple to used compared to non-custodial wallet that complex to used and might give a high risk if user don't know how to keep safe there keys.

This discussion for the used of custodial and non-custodial wallet has been discussed several times here in the forum. There will be no right or wrong answer here because we have different standards. Newbie will realize later the importance of non-custodial wallet once they are already educated on crypto but for starter. Let them buy crypto and hold on the wallet that makes them comfortable.

tbct_mt2

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Quote from: bitmover on October 23, 2020, 06:53:29 AM

So, after all, PayPal Bitcoin service will just be an integration with an exchange. Your coins will be in Paxos.

I didn't know about that. PayPal is taking some risks here, especially its reputation is on the line.

Exchanges can be hacked. Exchanges are sometimes shady. I don`t trust any of them my bitcoins, and now I see that I wouldn't trust PayPal as well.

So, holding bitcoin in PayPal you are literally holding in Paxos.

I don't think using any custodial wallet is good decision and with PayPal, people double their risks by use third-party services two times. PayPal has chargeback and your bitcoin will not be directly sent to your wallet address (in custodial or non-custodial wallet, it depends which wallet type you use).

Charge back on PayPal: risky.
Paxos: another type of risky temp storage on exchange.

People don't have full control on their bitcoin with PayPal and Paxos.

error08

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Quote from: witcher_sense on October 23, 2020, 07:50:10 AM

............

There is no room for bitcoin in Paxos' future. Don't trust them with your bitcoin. Not your keys, not your coins.

First, the service is not for everyone, it's limited to people resident in the US.
Second, bitcoiners or people who have learned about basic things of bitcoin acknowledge the risk of store their coins with a third party.
Because both Paypal and Paxos shared the same vision about profits in cryptocurrency, so here they are offering 'buy and sell cryptocurrency' option for people who want to, there is no compulsion in it. If PayPal will enable users to transact using cryptocurrency to merchants, it will be even better for the adoption due to PayPal has 346 million active users.

CarnagexD

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Quote from: bitmover on October 23, 2020, 06:53:29 AM

Quote

PayPal & Paxos Bring Crypto to Millions of Users

I am very excited to announce that Paxos is powering PayPal’s new service enabling its US users to buy, hold and sell cryptocurrency directly from their PayPal digital wallet. This news includes many firsts and has huge implications for the PayPal community, the crypto industry and, of course, Paxos.

For the PayPal community, today is the first time its users can purchase crypto assets directly from PayPal. PayPal is introducing the ability for its users to buy, hold and sell Bitcoin, Ethereum, Bitcoin Cash and Litecoin. To start, PayPal is offering this service to its US customers, then plans to add more geographies and features over time.

https://www.paxos.com/paypal-paxos-bring-crypto-to-millions-of-users/?utm_medium=email&_hsmi=98015516&utm_content=98015516

So, after all, PayPal Bitcoin service will just be an integration with an exchange. Your coins will be in Paxos.

I didn't know about that. PayPal is taking some risks here, especially its reputation is on the line.

Exchanges can be hacked. Exchanges are sometimes shady. I don`t trust any of them my bitcoins, and now I see that I wouldn't trust PayPal as well.

So, holding bitcoin in PayPal you are literally holding in Paxos.

Paypal had been a refutable source, and if this comes to worst, we all have someone to blame a d to hold accountable for unlike most exchanges on the market that are lead by a team of anonymous people. So I don't see anything bad about this honestly speaking. Might as well support it as Elon Musk had been vocal in aupporting bitcoin and cryptocurrencies.

DooMAD

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Quote from: bitmover on October 23, 2020, 06:53:29 AM

PayPal is taking some risks here, especially its reputation is on the line.

Exchanges can be hacked.

If they held the coins themselves, PayPal could be hacked. It makes sense from a business perspective to have a "fall guy" to blame and distance yourself from if it all goes tits-up. They know exactly what they're doing.

verita1

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Looking at it from the bright side.
Paxos Crypto Brokerage will offer PayPal users the in-app crypto service where the user experience will be easy and intuitive. It is the key for users with no prior knowledge of crypto to quickly learn how to manage their funds.
PayPal users can use the following trading pairs in their crypto wallet: BTC/USD, ETH/USD, BCH/USD, LTC/USD and PAXG/USD

I just wish that Paxos Crypto Brokerage technology additionally provides maximum security to its users.

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