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PayPal has confirmed that its customers will soon be able to transfer cryptocurrency from their accounts to external wallets for the first time. Currently, it is only possible for customers with crypto coins in their accounts to either hold onto them or spend them.

CoinDesk, Head of Blockchain Services for PayPal, Jose Fernandez da Ponte, confirmed that the service will be introduced at Consensus 2021, a conference organised and hosted by CoinDesk.

“We want to make it as open as possible, and we want to give choice to our consumers,” Jose confirmed for those in attendance.

“Same as we let them pay any way they want to pay, we want them to bring their crypto to us, so they use it in commerce, and we want them to take the crypto they acquire with us and take it to the destination of their choice.”

When quizzed as to the likelihood of PayPal introducing its stable coin sometime in the near future, Mr. da Ponte stated that it is “way too early” for this kind of move to be made. He also commented on expectations with regard to the rollout of central bank digital currencies, stating that “it absolutely makes sense that central banks will issue their own tokens.”

A long-awaited service expansion

PayPal officially entered the cryptocurrency game as recently as March this year, when it was confirmed that the company would begin letting customers in the US use crypto coins for payments.

Shortly after, PayPal announced that it would allow its customers to connect their accounts with their Coinbase-operated digital wallets, facilitated by the Venmo payment app.

“Crypto on Venmo is a new way for the Venmo community to start exploring the world of crypto within the Venmo environment they trust and rely on as a key component of their everyday financial lives,” commented Senior Vice President of PayPal and General Manager of Venmo, Darrell Esch.

“No matter where you are in your cryptocurrency journey, crypto on Venmo will help our community learn and explore cryptocurrencies on a trusted platform and directly in the app they know and love.”

“Our goal is to provide our customers with an easy-to-use platform that simplifies the process of buying and selling cryptocurrencies and demystifies some common questions and misconceptions that consumers may have.”

This month, property prices rose once again, by £2,509, resulting in the average price of a home in the UK rising to an all-time high of £336,073. With the price increases and the end of the stamp duty tax break, many buyers are asking whether this is the time to buy or if it would be more prudent to wait until 2022.

The property market has been somewhat chaotic over the past few months, mostly due to the pandemic and the stamp duty holiday. However, there are early indications that the market is starting to slow down and normalise. The monthly house price index report by Rightmove showed a 0.8% rise in June, down from a much higher 1.8% increase seen in May. April showed an even bigger leap of 2.1%, according to the report.

Rocketing prices were attributed to the increased demand for properties during the stamp duty holiday as well as the extremely low-interest rates on offer. With the tax break coming to an end, demand has significantly decreased, and property prices are expected to stabilise.

On July 1st, the stamp duty threshold will change to £250,000, and from October 1st, it will return to £125,000.

Ask the experts

Experts give their professional opinion on whether now is the right time to buy or if it is better to hold off for now.

Moneyfacts’s finance expert, Rachel Springall, commented that the impact on first-time buyers and people looking to remortgage will be different. Remortgagers will find they have more equity than they had before, while first-time buyers will need to save larger deposits due to increased house prices.

She also explained how new homeowners may find themselves in negative equity if prices were to drop in the near future.

She explained: “If first-time buyers have a 5% deposit to get their foot onto the property ladder, then they will find deals returning to the market after a notable absence.

“However, whether it is the right time for them to commit must be considered carefully because house prices could fall and leave borrowers in negative equity.

“Borrowers who have a limited deposit or equity may wish to spend more time building a larger pot and wait a little longer before they commit to a mortgage.”

Rachel also advised that a larger deposit attracts lower interest rates when it comes to getting a mortgage. A two-year fixed-rate mortgage with a 10% deposit works out at 0.53% lower than the same mortgage with a 5% deposit.

She said, “Clearly, stretching to just 5% more could entail some substantial savings on mortgage repayments by moving down the next loan-to-value bracket.”

She added that she would advise caution when it came to considering sub-1% mortgages and to ensure to check all fees and any additional costs before committing. She left off by saying that it is really down to individual circumstances whether now is the time to buy or not.

Hargreaves Lansdown’s personal finance analyst, Sarah Coles, stated that she felt that house price drops in the short term were “not the end of the world” if you expect to live in the property over the long term. However, she advised buyers to be aware of bidding wars and to not pay more than they wanted to, in which case it may be better to wait.

Sarah added, “Likewise, it might make sense if you haven’t saved enough of a deposit to make the mortgage affordable or if you’re concerned about the immediate outlook for your job.

“But there similarly might be very good reasons to get on with it, especially if you’re living somewhere that’s making you or your family unhappy.”

On June 5, G7 finance ministers reached a historic global tax reform agreement, fulfilling the promise of Chancellor Rishi Sunak to ensure the world’s biggest international businesses make an appropriate contribution.

Key details of the agreement reached at the G7 summit

• G7 Finance Ministers strike a seismic agreement on global tax reform that will mean the largest multinational tech giants will pay their fair share of tax in the countries in which they operate.
• Following two days of talks chaired by Chancellor Rishi Sunak in London, counterparts agreed to reforms that would see multinationals pay tax in the countries where they do business.
• As part of the landmark deal, finance ministers also agreed to the principle of a global minimum rate that ensures multinationals pay a tax of at least 15% in each country they operate in.
• Nations also agree to follow the UK’s lead in making climate reporting mandatory and agree on measures to crack down on the proceeds of environmental crimes.

Source: Gov. uk

At the culmination of several years of discussions, finance ministers from the G7 nations reached an agreement that will see major international companies face fair tax obligations in the countries in which they do business. It was also agreed that multinationals should pay a global minimum tax rate of at least 15% in every country they operate in.

Speaking after the event, Chancellor Rishi Sunak commented on the significance of the landmark agreement and its positive impact on the UK economy.

“These seismic tax reforms are something the UK has been pushing for and a huge prize for the British taxpayer, creating a fairer tax system fit for the 21st century,” he said.

“This is a truly historic agreement, and I’m proud the G7 has shown collective leadership at this crucial time in our global economic recovery.”

Further, focus on environmental issues

It was also agreed at the meeting that G7 leaders should follow in the footsteps of the UK by demonstrating genuine commitment to the integration of climate change prevention and biodiversity preservation in all aspects of financial and economic decision-making.

Since the creation of the Task Force on Climate-Related Financial Disclosures (TCFD) six years ago, the United Kingdom has played a major role in ushering G7 nations in a more proactive direction where major climate issues are concerned. Specifically, the UK has encouraged and inspired the G7 to make climate disclosures mandatory across their respective economies.

Support for vulnerable countries

G7 ministers also pledged to offer additional support to poor and vulnerable countries worldwide, furthering the group’s milestone backing of the $650 billion general allocation of Special Drawing Rights (SDRs) earlier this year.

Further details on the agreements reached and the meeting can be found on the official Gov. uk website, while images of the historic summit have been published on HM Treasury’s official Flickr page.

The month of May has seen yet another hike in the average price of properties, reaching a record of £261,743, according to Halifax’s latest house price index figures. This is the strongest level seen in almost 7 years, with house price inflation rates rising by 9.5% over the last year.

During May, a significant increase in year-on-year house prices was seen in all regions of the UK, except for the North East. Wales once again showed the highest growth, with an impressive 11.9% rise in the last year. Not far behind were the North West and Humberside, with both areas reporting double-figure inflation on property prices. For the North West and Wales, these figures indicated the best gains seen since April 2005, while for Humberside, the property market has not seen rises like this since June 2006.

While the North of England is thriving, the South is not fairing as well, especially in the case of Greater London, where, although prices are up 3.1% from last year, it is still somewhat lagging behind the rest of the country. This is likely due to the shifting preference for property types due to changing work habits and lifestyles following the pandemic. With more buyers working from home, the demand for city properties has significantly decreased, with preferences steering more towards larger properties with outdoor spaces in suburban and rural areas away from big cities. Brexit and additional stamp duty surcharges for non-UK citizens will have no doubt also had a negative effect on overall property sales in London.

Russell Galley, Managing Director, Halifax, stated:

“House prices reached another record high in May, with the average property adding more than £3,000 (+1.3%) to its value in the last month alone. A year after the first easing of national lockdown restrictions and the gradual reopening of the housing market, annual growth surged to 9.5%, meaning the average UK home has increased in value by more than £22,000 over the past 12 months.

“Heading into the traditionally busy summer period, market activity continues to be boosted by the government’s stamp duty holiday, with prospective buyers racing to complete purchases in time to benefit from the maximum tax break ahead of June’s deadline, after which there will be a phased return to full rates. For some homebuyers, lockdown restrictions have also resulted in an unexpected build-up of savings, which can now be deployed to fund bigger deposits for bigger properties, potentially pushing property prices even higher.

“While these effects will be temporary, the current strength in house prices also points to a deeper and longer-lasting change as buyer preferences shift in anticipation of new, post-pandemic lifestyles: As greater demand for larger properties with more space might warrant an increased willingness to spend a higher proportion of income on housing,

“These trends, coupled with growing confidence in a more rapid recovery in economic activity if restrictions continue to be eased, are likely to support house prices for some time to come, particularly given the continued shortage of properties for sale.”

Director of Sales at Specialist Lender Together, Sundeep Patel, explains:

“The surge in demand for property we’re continuing to see showed no indication of slowing last month. House prices reached another record high in May, up by 1.3% (more than £3,000) in value than in April. Annual growth also surged by 9.5%, with the average house price in the UK now at £261,743. However, with the stamp duty tax break starting to taper off at the end of this month, we’re likely to see this unprecedented rush for new homes ease off by the time we hit the end of summer. The recently released travel traffic light list for UK holidaymakers may also dampen activity as people prepare to make a break for guaranteed sun and so stick a pin in their property plans back home.

“How the property market will shape up by the end of this year is no way near certain. However, whether house prices have been artificially inflated or not, it is possible the backlog in demand from keen buyers will markedly increase opportunities for specialist lenders as increased volumes of borrowers turn to finance, such as bridging loans, to quickly purchase their ideal homes.”

SPI Capital’s CEO of Asset Management, Anne Claire Harper, adds:

“Investors and homeowners alike are wondering whether the housing market boom is about to bust. With 9.5% house price growth in the year to May, despite the huge economic problems caused by the pandemic, it’s a sensible question.

“The truth is, what tends to happen in the housing market is different from what happens with other purchases and investments. In other sectors, when consumers get nervous, they stop spending so much. When investors get nervous, they are scared to sell. Things are different in the housing market because homes are ‘essential’. We all need a place to call home.

“So, unlike crypto ‘investments’ or shares, people tend not to sell unless they really need to. And, with interest rates low and forecast to remain so, it can be cheaper to pay a mortgage on an equivalent property than to pay rent. So a mass sell-off from property owners who have already managed to put down a deposit seems unlikely unless interest rates rise significantly.”

‘According to Halifax, average annual house prices are at a historic high, at £261,743, which will seem unaffordable to many—in particular, younger people. A big cause of growth over the past year has been the desire for more space, and for those not moving, home renovations are increasingly popular. This is symbolic of our rising living standards, which is, on the whole, a good thing. As a result, house prices and construction costs are rising. This means, in turn, that the cost of renting, buying, and improving homes is likely to continue to rise.”