You'd be surprised. A lot of sellers don't "cash out" from paypal all that often, letting tens of thousands pile up. (And inevitably, some of them get hit with arbitrary account closures and have that money seized)

In that case it isn’t, but this thread is specifically about holding money in PayPal: https://news.ycombinator.com/item?id=45250598

My point is that one doesn’t get all the protections normally taken for granted for EU bank accounts.

The question is if a EU bank has to provide deposit insurance but PayPal does not how can PayPal be a bank.