PayPal, a global payment giant, started its journey in the crypto space in November 2020.
Former FTX CEO’s scheduled appearance at hearing
According to its end-of-year report submitted to the United States Securities and Exchange Commission, PayPal held more than $604 million in four major cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.
Breakdown of Crypto Holdings
The report reveals that bitcoin and Ethereum accounted for over 90% of the total crypto holdings, with a combined value of $500 million. PayPal held approximately $291 million in bitcoin and $250 million in Ethereum. The remaining $63 million was divided between bitcoin cash and Litecoin. The crypto assets are held by a third-party custodian and are not commingled with other assets.
Reasons for Reporting
Although PayPal started accepting crypto payments in 2020, the 2022 report does not cover the preceding years. However, PayPal included last year’s crypto data to address the risks associated with cryptocurrencies. The filing also mentioned that PayPal has recognized a crypto asset safeguarding liability to demonstrate its responsibility in protecting customers’ crypto deposits.
PayPal’s Interest in Digital Assets
Since launching support for multiple cryptocurrencies in 2020, PayPal’s interest in digital assets has grown substantially. It recently introduced a feature that allows users to pay with cryptocurrencies at checkouts. CEO Dan Schulman has been bullish on digital assets and praised their efficiency and cost-effectiveness. In 2019, he announced that he held some digital assets himself.
The arrest of FTX CEO Sam Bankman-Fried has sparked controversy and raised serious questions about the SEC's process and cooperation with the Justice Department. US lawmakers are calling out #SEC Chair Gary Gensler for the timing of the charges.— Logll Tech News (@LogllNews) February 10, 2023
👉 Video: https://t.co/FfXHWwQaE0 pic.twitter.com/6er9Y7qelU
Recommended reading: 5 Tips for Beginner Bitcoin Traders
In conclusion, cryptocurrency is a rapidly evolving and dynamic industry that has the potential to revolutionize the way we think about money and finance. While there are risks and challenges associated with the use of cryptocurrency, there are also many advantages and opportunities. As the industry continues to mature and evolve, it will be fascinating to see how it develops and what new innovations and use cases emerge.
Whether cryptocurrency will eventually replace traditional fiat currencies or simply coexist alongside them remains to be seen, but one thing is certain: the future of finance is digital, and cryptocurrency is at the forefront of that revolution.