Circle co-founder and CEO, Jeremy Allaire, who on Twitter shared a screenshot of a purchase confirmation of about 0.0075 BTC paid $ 100.
The purchase price was $13,265, which is the price of this night plus a slight spread, and no fees were applied.
As known, for now PayPal is not acting as a non-guardian wallet of BTC, but only as an intermediary, allowing its U.S. users to buy and sell bitcoins on Paxos, but using PayPal as a unique interface.
That is, the transactions in crypto currency actually take place on the Paxos Crypto Brokerage platform, apparently without fee, but the user performs them on PayPal, which applies a spread on the price.
It is fair to imagine that part of this spread is used by PayPal to pay the Paxos service.
This is for all intents and purposes of purchases made on a centralized exchange, without registration on blockchain, so you can avoid fees.
The purchase of Bitcoin on Paypal
Allaire hasn’t posted any further screenshots, for example to show the BTC 0.0075 deposit on her account, but what we do know is that even if they are not physically stored on PayPal, they can be sold with a similar procedure.
Curious that the first to give the news, complete with screenshots, was the CEO of a company that in some ways could be a competitor of PayPal.
In fact, Circle collaborates closely with Coinbase, with which it issued USDC, the second most popular stablecoin in the world based on the U.S. dollar.
Evidently the news is considered so important for the entire crypto industry that even the CEO of a company that in some ways competes with PayPal has decided to advertise it.
It should be noted, however, that Coinbase itself seems to be collaborating with PayPal for some time, since a few months ago it enabled the possibility to make withdrawals in fiat currency on the PayPal account. At this point one could also imagine a potential future collaboration between the two companies, for example to provide liquidity in cryptocurrency to PayPal.