Bitcoin Global News (BGN)
April 8, 2019 -- ADVFN Crypto NewsWire -- Despite the strong
competitive placement of cryptocurrencies to the products and
services offered by Paypal, the company has almost entirely stayed
out of the burgeoning industry. Whereas other digital payment
processing companies such as square have taken strong steps to
embracing growth of cryptocurrencies and blockchain technology with
acquisitions and integration of cryptocurrencies themselves, Paypal
has reported almost no serious development.
Last year the company began
experimenting with an in-house blockchain based app that operates
similar to something like Venmo. The app facilitates an employee
reward system via a digital work space, where the in-house currency
can be used for specific business related activities or traded with
other employees, but cannot be exchanged for fiat currency. They
are valid for over 100 different rewards or experiences with Paypal
Executives, such as poker tournaments, martial arts classes or dog
walks.
Cambridge Blockchain Data
Services
Other than the employee rewards
network, Paypal has recently invested a small sum in a company
using blockchain technology to facilitate management of sensitive
data, with a focus on financial institutions. This is the first
cryptocurrency of blockchain technology related investment Paypal
has been reported to make, and is part of Cambridge Blockchain’s
series A funding. The round included input from HCM Capital, The
Digital Currency Group and Omidyar Network, totalling $10.5
million.
“We made an investment in Cambridge
Blockchain because it is applying blockchain for digital identity
in a way that we believe could benefit financial services companies
including PayPal. Our investment will allow us to explore potential
collaborations to leverage blockchain technology.” - Paypal
Spokesperson
PayPal’s Luxembourg
Growth
The relationship began last year at
the Fintech Europe 2018 accelerator program where Cambridge
Blockchain first formed. The program is sponsored by Paypal and
highlights Paypal’s growing interested in the UK and Luxembourg,
where the program’s conferences took place. Paypal recently moved
their European headquarters to the city and has already been
granted a banking license from the country’s financial regulators.
Further, Cambridge Blockchain has been working with LuxTrust, a
startup which is perfectly situated to help their services, as well
as Paypal’s interests. LuxTrust is backed by the government of
Luxembourg and financial institutions in the region.
“We can’t talk specifically about
anything commercially that we are doing because it’s all sort of
exploratory now, but I think the fact that we are deployed in
Luxembourg and they [PayPal] have a major presence there also
helped to get things moving.” - Cambridge Blockchain CEO Matthew
Commons
By: BGN Editorial Staff