Mobile Ethereum Wallet

Dave asked 3 months ago

I’m writing to you because of your in depth knowledge and research into the space.
I am interested on your thoughts about whether a peer to peer OTC trading app for Ethereum would work? E.g. I have created a wallet app and a peer to peer app that accepts paypal and CC payments.
I envision a way for anyone using the app to buy a small amount <$1,000 of ETH using their paypal or CC easily, quickly and cheaply.
Please let me know what you think,

1 Answers
Steven Hay answered 3 months ago

Hey DZ,
Well, this sounds very interesting. I’m not sure how it can be strictly peer to peer if it’s going through 3rd party payment services like PayPal and credit cards however. It seems to me these companies would be able to reverse fiat payments, which is dangerous when dealing with irreversible crypto payments…
For example, what happens if I buy ETH from you via PayPal, then contact PayPal and say I never received my ETH? PayPal will almost certainly return my fiat money and you will have lost your ETH. PayPal is likley unable / unwilling to audit the Ethereum blockchain, even if you could some sort of cryptographic proof that you send ETH to my address (which should be simple). Unless you can convince PayPal or credit card firms to accept such cryptographic proofs, I don’t see how you can get around the reversal problem.
Sorry to be a downer, but this is why PayPal is almost never accepted by crypto sellers and why exchanges which accept credit cards charge a huge premium.

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