Decred’s co-founder said cryptocurrencies may not fit PayPal’s model.
PayPal could be gearing up to work with crypto assets, according to recent rumblings, although Decred co-founder Jake Yocom-Piatt is unsure of those rumors’ validity.
“It’s hard to say whether these are rumors or not regarding PayPal accepting cryptocurrencies soon,” Yocom-Piatt told Cointelegraph via email correspondence when asked about the rumors.
The pairing does not seem like a fit
Recent news showed PayPal seeking to fill crypto and blockchain-related job positions, while rumors circulated of the platform listing crypto assets.
Although the addition would bring digital assets greater availability, Yocom-Piatt added that the move would not line up with PayPal’s system. “PayPal, specifically, is notorious for depriving its users of access to legitimately-acquired funds on their platform with little to no justification,” he said.
“Users having their funds restricted in this fashion is something cryptocurrencies are designed to prevent, making this integration, if it is indeed in progress, an odd combination,” the Decred co-founder noted.
A report several months ago showed difficulties around users’ PayPal payments, based on different terms flagging transactions and stalling them. “PayPal, along with its subsidiary Venmo, uses a system that automatically flags keywords in the payment memo field that could indicate a violation of U.S. sanctions,” Slate said in the February 2020 article.
The scene around such term flagging remains a difficult conundrum, as security and protection remain important, as is monetary freedom. Although not money-related, a similar situation has plagued the crypto-YouTuber community in recent months, as many top channels suffered bans as a result of content flagging.
Crypto is the opposite
Bitcoin, crypto’s pioneer asset, at its core, serves as a method of value transfer and storage, away from governmental control. Users can hold and transfer value themselves, without authorities directly swaying the value of the global, non-governmental asset.
In contrast, payment services such as PayPal use government currencies inside controlled parameters.
“A fiat payment platform notorious for depriving access to funds would be adding support for cryptocurrencies, which are notorious for have no restrictions on funds,” Yocom-Piatt said following up his comment of crypto and PayPal as an odd mix.
The future will tell whether or not PayPal will add the new asset class.