The purchase of Curv by PayPal is one of the company’s big crypto plans, which involves working with central banks on crypto assets.
PayPal reported on Monday that it bought Curv, a startup based in Tel Aviv employing a novel kind of cryptography to protect user’s reserve of Bitcoin and other digital currencies. This movement is the newest sign by the payment gateway’s giant crypto evolving plans and offers clues into their strategy to maximize the rapidly changing world of finance tech.
In a press release where the acquisition of Curv was announced, the payment Giant did not tell the public how much the deal cost but someone well involved with the Company related to Decrypt that it was about $200m.
The purchase is the newest in the series of recent deals by PayPal, which bought Honey (a coupon service) for $4 billion late in 2019 and iZettle (a small business payment service) for $2.2 billion.
Curv is among the emerging companies including the likes of BitGo (PayPal thought of acquiring the Company last year, they help protect the crypto holdings of holders and banks from hackers) and Anchorage.
The company prides itself on the usage of multi-party computation to protect its crypto reserve. Rather than regular storage methods that rely mostly on distributing the key to a digital wallet in several places, multi-party computation depends on cloud computing and mathematics to mitigate unwanted access.
Jose Fernandez da Ponte the VP and General Manager of Paypal’s blockchain and Crypto group said in an interview with Decrypt that PayPal has been making negotiations with Curv for about a year and tried to acquire its about 40 personnel workforce partly due to their technical sophistication. He also said that Curv Founder will remain at PayPal but the payment giant is not stating any particular roles of titles to the public.
PayPal, Central Banks & Expectations of the Financial World
The CEO of PayPal, Dan Schulman told Decrypt not long ago that he looks at the crypto initiatives of the Company to be part of a bigger plan to foster financial inclusion (an assumption the Vice President talks about when explaining the acquisition of Curv).
Even though phrases like “financial inclusion” and democratizing finance” are common catchphrases of Bitcoin lovers, it is not certain when they will become feel-good rhetoric. In places like Venezuela and Argentina, where their economies have been greatly affected by government disorder and hyperinflation, only a little number of citizens deferred to bitcoin, choosing to rely instead on US dollars to protect currency fluctuations.
As Shulman stated that the charges on transactions – such as those charged by credit card organizations, banks, and more remain assiduously high even though a variety of improved digital efficiencies have arrived. These charges which are tasked to users are usually hard on poor consumers and people who want to move to another border.