PayPal’s Venmo app will now allow it seventy million customers to buy, hold and sell cryptocurrency. The roll-out will begin this week and become available to all customers in the next few weeks. Customers can choose from Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.
The week kickstarted when Tuesday Venmo announced that it would let its users trade cryptocurrencies on the platform. This in essence means that now the 70 million users of the app will have access to crypto tokens like Ethereum and Bitcoin. This news certainly has come at a time when the value of digital tokens is hitting a new-all-time high each day.
Currently, the number of cryptocurrencies and types of cryptocurrencies are pretty limited. The app will offer Bitcoin, Litecoin, Ethereum, and Bitcoin cash for buying and selling on its platform. No restriction has been put with respect to the limit on the number of tokens a user can acquire. However, users must ensure that their investment amounts to at least $1. This means that they can trade, buy and sell as little as a dollar worth of crypto. As a user makes an investment it will be stored on the user’s Venmo app account which they can sell later.
Crypto coins owned in other wallets such as Coinbase cannot be transferred by investors to Venmo as clarified by the company’s spokesperson. Similarly, all tokens that were procured via the Venmo app can only be accessed through the app and not transferred to another wallet. Venmo also confirmed that cryptocurrencies cannot be transferred between Venmo accounts either. This means you cannot send out cryptocurrencies via Venmo. The functions of the app are very limited at the moment but hopefully, it will be easing out later.
Venmo claims that its user wouldn’t require bank transactions for the transfer of funds. With the Venmo app, users can buy the digital tokens with their prevailing Venmo balance. Moreover, those who don’t have sufficient funds in their Venmo account can connect a debit card or bank account and complete purchases.
Venmo’s announcement is good news because crypto adoption is becoming more and more widespread and this is a positive step. However, Venmo doesn’t come with much functionality and the facility is not available in every state currently.
Overall PayPal expanding its crypto trading, buying, and selling applications to Venmo has got users really excited. PayPal has been actively participating in the crypto frenzy as it starts to roll out its own crypto services now. With Venmo joining them PayPal will be rolling that out to all customers on the Venmo platform. While it doesn’t come with much functionality, it is nonetheless a big announcement that they are integrating. This is the first step and obviously, it is going to expand from here but currently, there isn’t much to offer.