Popular peer-to-peer trading platform Paxful has launched a new feature, allowing its users to trade Bitcoin (BTC) for gold. By doing this, the platform is now allowing customers to continue their peer-to-peer trading normally, but with a non-crypto asset.
Speaking with CoinDesk, Paxful CEO Ray Youssef said that the trades aren’t new and customers had already been doing this for a long time.
“Our users were already starting to do this on quite a large scale. We weren’t aware of it because it was difficult to track. We actually had to go in and talk to people…I’m always interacting with the customers because I want my ears glued to the street”
Based on reports from customers, the exchange decided to officially make this service available and people may now exchange both assets freely. However, if customers want to exchange gold valued above $50, they must first go through Paxful’s know-your-customer (KYC) requirements.
Interested users first negotiate terms of the transaction and the location of the exchange. When that has been agreed, the party with Bitcoin pays the agreed sum to a Paxful escrow where the funds are kept until the person confirms that they have received the gold. Any transactions that aren’t completed within 21 days, enter dispute arbitration.
Youssef further stated the service is also available in countries usually ignored by major crypto companies. He specifically mentions Nigeria, Malaysia, Ghana, and Venezuela.
Paxful recently conducted a survey in India, concluding that Bitcoin adoption in the country will explode soon.