3 ms·
It is not certain they will do anything that makes price variations a concern. Now they'll simply allow their customers to buy and sell. On the KYC front, acto
by xorcist 6y ago
It is not certain they will do anything that makes price variations a concern. Now they'll simply allow their customers to buy and sell.
On the KYC front, actors like Paypal (and Square, Braintree and so on) are in a very good position, as they are already payment processors and fully compliant with those regulations. That is something smaller upstarts struggle with, not the established ones. It can even benefit them as a moat.
- raesene9 6y agoIf I read the article correctly it said that Paypal would take payement in cryptocurrencies and then pay the merchants with fiat. That means they will need to hedge the risk of a change in exchange rate between buying and settlement (for example paypal offers to settle payment 14 days after payment as a service). Now they can do that, but it'll take some effort. On KYC I'd agree they're in a better position, but it seems like they'll still need to beef up their processes, as regulators are quite interested in proving where cryptocurrencies came from. They'll not want to be caught with a load of coins that came from the latest ransomware incident.
- fauigerzigerk 6y ago>but it seems like they'll still need to beef up their processes, as regulators are quite interested in proving where cryptocurrencies came from. Perhaps PayPal will only allow people to pay with cryptocurrency they have bought from PayPal in the first instance. So there wouldn't be any incoming our outgoing movements of cryptocurrency at all.