In a recent interview with Jose Fernandez da Ponte, PayPal’s Senior Vice President of Cryptocurrency and Digital Currency, he talked about the development vision, use cases and advantages of PayPal’s stablecoin PYUSD compared to other stablecoins. However, does the menacing PayPal really have no shortcomings after launching PYUSD? Are there any restrictions on use that you are not aware of?
(Related reports: Analysis of PayPal Stablecoin PYUSD｜Profit mechanism and usage scenarios? What are its advantages over USDT?)
PayPal’s Cryptocurrency Buying, Selling, and Transfer Restrictions
According to PayPal's official cryptocurrency terms, users are restricted in buying, selling, converting, and transferring cryptocurrency. The following are standard transaction restrictions:
Weekly trading limit: $100,000
Weekly transfer limit: $10,000 total transaction limit
Crypto asset minimum purchase amount: $1
Cryptoasset minimum sale amount: $1
Minimum conversion amount of PYUSD to other crypto assets: $2
Minimum transfer amount to other PayPal Cryptocurrency Centers: $0.01 total cryptocurrency assets
Minimum transfer amount to PayPal external wallet address: BCH: 0.01 BCH BTC: 0.001 BTC ETH: 0.01 ETH LTC: 0.01 LTC PYUSD: 10 PYUSD
It can be seen from the restrictions that although PayPal has an advantage over some exchanges in the minimum buying and selling volume of crypto assets. However, the weekly transaction and transfer limits are relatively low, and it is very easy for users with large amounts of crypto assets to reach the upper limit.
In addition to the usual transaction fees, PayPal also charges spread fees
In addition to the above restrictions, buying and selling cryptocurrencies on PayPal also requires certain transaction fees. The fee standards are as follows:
However, in addition to transaction fees, PayPal also charges a spread fee when users buy, sell or convert crypto assets. In other words, after PayPal obtains the price of crypto assets from the transaction service provider, it will add about 0.5% as a spread fee, making each transaction more costly for users.
PayPal limits illegal behavior and can seize user assets
Finally, as a centralized institution, PayPal also has restrictions on illegal or malicious activities, including:
Buy crypto assets using funds PayPal believes are fraudulent
Initiate any transaction that is not intended to be completed or intended to abuse, manipulate, or mislead other participants in the crypto asset market
Sending and receiving cryptoassets for any illegal purpose or in connection with any illegal activity
Engage in any activity designed to defraud PayPal, other PayPal users, or any other person
Control and participate in any account associated with restricted activities
If the above behavior is violated, the user's ability to buy, sell and transfer cryptocurrency may be restricted, and PayPal may further seize user assets.
This article: Is PayPal invincible with its stablecoin PYUSD? The Limitations of PayPal Cryptocurrency Functions You Don’t Know appeared first on Chain News ABMedia.