News provided by Circle Co-Founder and CEO Jeremy Aller, who shared on Twitter a screenshot confirming the purchase of a cryptocurrency worth about 0.0075 BTC equivalent to $ 100.
Purchase rate was $ 13,265 plus smallspread, 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.
This means that cryptocurrency transactionsactually occur on the Paxos Crypto Brokerage platform, seemingly no fees, but the user spends 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.
Aller did not publish any additionalscreenshots, for example, to show a 0.0075 BTC deposit in his account, but it is known that although they are not physically stored in PayPal, they can be sold using a similar procedure.
It is curious that the first to report this newsCEO of a company that could compete with PayPal. In fact, Circle is working closely with Coinbase, which has released USDC, the second most common USD-based stablecoin in the world. Obviously, the news is so important to the entire cryptoindustry that even the head of a company that competes in some way with PayPal decided to advertise it.
However, it's worth noting that Coinbase itself appears to behas been cooperating with PayPal for some time, given that a few months ago it allowed withdrawing funds in fiat currency to a payment system account. At this stage, one can also envision potential future collaboration between the two companies, for example, as providing cryptocurrency liquidity to PayPal.
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