PayPal users now can buy bitcoins through the Paxos exchange

by in Cryptocurrency News


The news was provided by Circle Co-Founder and CEO Jeremy Aller, who shared on Twitter a screenshot of a purchase confirmation worth about 0.0075 BTC equivalent to $100.

The purchase rate was $ 13,265 plus a small spread, no commissions were charged. At the moment, PayPal is not a BTC wallet, but just an intermediary allowing US users to buy and sell bitcoins on Paxos, but using PayPal as a unique interface.

That means that cryptocurrency transactions take place on the Paxos Crypto Brokerage platform, seemingly without fees, but the user conducts them on the PayPal site, which applies a price spread. It is fair to assume that part of this spread is used by the payment system to pay for the Paxos service.

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Aller has not posted any additional screenshots, for example, to show a 0.0075 BTC deposit in his account, but it is known that while they are not physically stored in PayPal, they can be sold using a similar procedure.

Curiously, the first to announce this news was the CEO of a company that could compete with PayPal. Circle is working closely with Coinbase, which has released the USDC, the second most common USD-based stablecoin in the world. The news is so essential to the entire crypto industry that even the head of a company that, in some way, competes with PayPal decided to advertise it.

It's worth noting, however, that Coinbase itself seems to have been partnering with PayPal for some time, given that it allowed fiat withdrawals to a payment system account a few months ago. At this stage, one can also envision a potential future collaboration between the two companies, for example, as providing cryptocurrency liquidity to PayPal.