The availability of gateways that connect the cryptocurrency industry with traditional finance is vital to ensuring the flow of funds to and from the decentralized assets market. Had VISA, MasterCard and other off-ramp service providers refrained from connecting to the cryptocurrency industry, it would have been next to impossible for market participants to transfer their fiat currencies to exchanges and cash out using exchangers.
The possibility of turning assets earned as cryptocurrencies into fiat is the lifeblood that keeps the connection with the traditional financial industry and allows currency exchange operations to take place. Most importantly, cryptocurrencies thus receive a vital and convenient connection to traditional economies, allowing users around the world to purchase crypto using their available bank cards and accounts.
One of the most convenient methods for sending currencies overseas is PayPal – a gateway that allows users to connect their bank cards to e-wallets and make transfers to friends and businesses. In 2021, PayPal announced that it is allowing users to make purchases of cryptocurrencies with bank cards, offering a favorable exchange rate that made it possible for users to connect their digital assets with fiat. Such convenience resulted in the instant appreciation of many leading cryptocurrencies that were connected to PayPal, including Bitcoin and Ethereum.
Many people now resort to PayPal, including established market participants and those who have only recently learned about crypto. Any amount is available for purchase through PayPal and the ability to send virtually unlimited volumes of funds at acceptable transaction commissions makes the service ideal for small and medium-sized businesses and users alike.
However convenient, PayPal proved that it is not immune to the pressure of political frameworks, as it was forced to suspect operations with sanctioned countries in the wake of the conflict that rocked Eastern Europe in the beginning of 2022. The result was an immediate slump in the service’s popularity, as many users saw the move as an affront to the freedom of transacting and the use of cryptocurrencies as a trustless and borderless means of value exchange.
With restrictions placed on the users of some countries, many are wondering how it would be possible to use the given method to purchase Bitcoin and other cryptocurrencies. In fact, there are ways that users can resort to for using PayPal as an alternative to using Coinbase, or any other cryptocurrency exchange.
For users of states that have avoided sanctions regimes, the ability to buy Bitcoin using PayPal is open and convenient. All users will have to do is sign up to PayPal and open an account that will require them to pass the Know Your Customer verification procedure. Once users provide their personal identification details and receive approval from the moderators of the system, they will be given the opportunity to connect a bank account and a bank card that they will use to make transactions and receive funds.
Once the bank card has been connected and the system has approved the method, users will be able to access the crypto purchase section of the service’s website. The next step will be to top up the account balance and click on the “Buy Crypto” button that will redirect users to a straightforward exchange platform. There, users will have to select the cryptocurrency they wish to buy and amount of coins. Once that has been selected, users will have to click on the “Purchase” button and the transaction will be completed. The necessary amount of funds will be written off the user’s account balance and the corresponding amount of selected cryptocurrencies will be transferred to their account wallet.
The given method is extremely convenient for users who wish to avoid using exchanges and other centralized trading venues in cryptocurrency space that have been known to lose users’ funds by virtue of their poor security measures. PayPal is a reputable company that does not store the users’ funds, but rather retains them in custody, allowing users to remain in full control of their assets.
As for users of sanctioned countries, the only way for them to use PayPal as a means of purchasing cryptocurrencies will be to open a bank account in a country that is not sanctioned. Since no state will have the right to deny a citizen of a sanctioned country the opportunity to open an account balance on legal grounds, the next step will be to tether the account balance of said bank to PayPal. Online connectivity will do the rest as users will simply be using their foreign account as a means of topping up funds. The question of funding the foreign account is a topic for another discussion which goes beyond the scope of the given material.
PayPal is one of the most convenient online gateways for transactions and purchasing available. The service also provides a convenient and straightforward platform for purchasing cryptocurrencies. Though the list of available assets is still limited, many expect the platform to expand the list in the near future as select cryptocurrencies like USDT gain more popularity.
There are certainly issues with the reliability of PayPal as a truly independent and global means of transacting in light of its subjugation by political forces. However, that does not detract from its merits as a reliable and fully operational financial service gateway. Its ability to serve both small-time users and businesses of small and medium sizes makes it ideal for cross-border operations and purchase transactions using both fiat and cryptocurrencies.