PayPal, the well-known digital payments giant, is implementing a significant change to its Buyer Protection Program. From May 20th, purchases of non-fungible tokens (NFTs) will no longer be covered by the program, as announced by the company on its online platform. This change will affect both NFTs with transactions greater than 10 thousand dollars and those below this value, except in cases of unauthorized transactions that meet all other program criteria.
Historically, PayPal has been a facilitator in the NFT ecosystem, offering users the ability to buy, sell and hold these assets directly through their accounts. This change in protection policy reflects a reassessment of its involvement in this volatile market, where, recently, NFT sales volume has dropped considerably. According to data from CryptoSlam, there was a 24% reduction in sales volume in the last 24 hours, highlighting PayPal's possible caution in continuing to offer protection in this segment.
In addition to changes in coverage of NFTs, PayPal continues to expand its operations in the field of cryptocurrencies with innovations such as the launch of the stablecoin PYUSD in early 2023. This digital token, pegged to the US dollar, represents the company's commitment to providing an option more stable in cryptocurrency market, contrasting with the volatility often associated with other types of cryptoassets.
Interest in NFTs peaked in 2021, when digital collectibles, offered by renowned artists and luxury brands, sold for millions of dollars. However, enthusiasm appears to have cooled, with less talk and fewer transactions, as evidenced by the closure of GameStop's NFT market in January this year, citing “the ongoing regulatory uncertainty in the crypto space” as the main reason for its withdrawal from the market.
