Australian cryptocurrency exchange, Independent Reserve, has partnered up with PayPal. This allows users to fund their wallets through the PayPal app. It will also make it a lot easier to buy cryptocurrency.
Local Bank Restrictions on Crypto Use
Digital currency is the future, but not everyone is on board. This is clear from the cryptocurrency restrictions Australian banks have put in place.
The biggest limitation is a monthly limit to how much you can deposit into an exchange. For example, Commonwealth Bank limits deposits to crypto exchanges to only $10,000 a month. On top of this, the banks do not allow instant deposits from crypto exchanges.
Another major restriction is the blocking of any “high-risk” payments. Some banks could flag payments to and from online sites as high-risk. Whether it’s online shopping sites, SaaS sites, or even gaming sites such as online casinos like https://www.topaustraliangambling.com/online-casinos/real-money/. In the case of the latter, this will prevent many users from using cryptocurrency at online casinos. This is despite crypto being some of the safest payment methods.
Why are Banks Restricting Transactions?
Recently, there has been a rise in crypto scams. This is when scammers pretend to be advisers and ask customers to send money to e-wallets. Since cryptocurrency is anonymous, there is no way of tracing scammers once the money is gone. So, by restricting transactions, banks are protecting their customers.
Banks also protect customers by blocking all cryptocurrency charges on credit cards. This is because the money does not belong to the customer. It’s technically a loan.
Finally, there are some volatility concerns. Crypto is highly volatile.
How Cryptocurrency Restrictions Affect the Market
Restrictions have a big impact on the market as a whole. It not only impacts purchases and payments but also the growth of the industry. The transaction limits will force users to buy less crypto. They will also only be able to transfer as much as the bank allows.
Strict limitations could also discourage people from using digital currency. This could slow down the growth of the market.
The partnership between the Independent Reserve and PayPal is a major development in the APAC crypto market. Customers now have more options to:
- Funding their crypto wallets, and
- Withdrawing from crypto exchanges.
PayPal is also making it easier to access, buy, and sell cryptocurrency. This could in turn lead to more growth in the market.
Bank restrictions on crypto do have a negative impact on users. But it also presents opportunities for growth in the market. Without it, partnerships like this one would not happen. Collaborations like this could help the market grow even faster. Nonetheless, only time will tell how this impacts the market
PayPal and Crypto
PayPal is an American online payment system used in many countries all over the world. In 2020, the company started offering transactions in crypto.
PayPal launched PYUSD on 7 August 2023. It is the first online payments company to launch its own stablecoin.
It’s designed to utilize and simplify payments. PYUSD is a digital dollar that you can transfer anywhere in the world. Transfers are instant and low-cost.
You can exchange PYUSD for dollars or other cryptocurrencies on the PayPal network. The company plans to expand to transfers between PayPal and third-party wallets.
Benefits of Using Stablecoins
Stablecoins have been around for 10 years but are often used to trade digital assets. With PYUSD, PayPal is integrating stablecoin with everyday payments.
There are several benefits to using stablecoin, including:
- instant transfers
- low transaction fees
- low volatility
Partnership between PayPal and Independent Reserve
The Independent Reserve is a centralized crypto exchange in Australia. In 2013, Adrian Przelozny and Adam Tepper founded the Independent Reserve according to their official site: https://www.independentreserve.com/about. The exchange caters to New Zealand, Singapore, and Australia. It supports NZD, USD and AUD fiat pairs.
PayPal allows you to transact with less restrictions. It also introduces solutions such as fiat on-ramp and withdrawal support. Fiat on-ramps allows you to exchange fiat currencies for cryptocurrencies. Thus, you can exchange dollars, or any government-issued currency, for Bitcoin.
Millions of people across the world use crypto coins as can be read here: https://www.bignewsnetwork.com/news/273941939/who-accepts-bitcoin-as-payment. But it is still intimidating for some. PayPal simplifies the process of buying, depositing, and withdrawing cryptocurrency. This makes it more accessible to everyday people.
What the Partnership Means for Independent Reserve Customers
Crypto restrictions impact the Independent Reserve and its customers. By partnering with PayPal, Independent Reserve customers can avoid bank restrictions altogether. Customers can now use the fiat currency in their PayPal accounts to fund their wallets. PayPal also has more generous deposit limits of $5,000 per day. This allows consumers to deposit a lot more every month. They can also withdraw from the crypto exchange to their PayPal account. This also protects customers if Australian banks impose stricter restrictions down the line.