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November 30, 2020
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First Bitcoin purchase on PayPal was made

The first bitcoin was purchased on PayPal.

The news is given by Circle co-founder and CEO, Jeremy Allaire, who Twitter shared an image of a purchase confirmation of about 0.0075 BTC for $ 100.

The purchase price was $ 13,265 and no fee was charged.

At the moment, PayPal is not a BTC wallet without custody, but only an intermediary, allowing its users in the United States to buy and sell bitcoin on Paxos, but using PayPal as a single interface.

This means that cryptocurrency transactions actually take place on the Paxos Crypto Brokerage platform, apparently without fees, but the user performs them on PayPal, which applies a spread over the price.

It is fair to imagine that part of this spread is used by PayPal to pay for Paxos’ service.

They are purchases made in a centralized exchange, without registration in the blockchain, to avoid fees.

PayPal Business

Allaire did not post any more screenshots, for example, to show the deposit of BTC 0.0075 in his account, but what is known is that, although they are not physically stored in PayPal, they can be sold with a similar procedure.

Interestingly, the first to break the news, with screenshots, was the CEO of a company that, in a way, could compete with PayPal.

In fact, Circle collaborates closely with Coinbase, with which it issued USDC, the second most widespread stablecoin in the world based on the US dollar.

Obviously, the news is considered so important for the entire crypto industry that even the CEO of a company that somehow competes with PayPal decided to announce it.

It is worth mentioning, however, that Coinbase itself seems to have collaborated with PayPal some time ago, since a few months ago it was possible to withdraw fiduciary currency to a PayPal account. two companies, for example, to provide cryptocurrency liquidity to PayPal.

Source: cryptonomist

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