I feel like it's weird to say that Paypal is allowing their users to spend crypto, considering you can't deposit or withdraw crypto from the platform. Even if they quote "didn't allow that" it would just require one extra step of selling the crypto for fiat first. In fact, this is actually what's happening in the background: PayPal is just doing it for us behind the scenes and eliminating that step for the frontend-user.

It kinda just seems like a marketing ploy to keep PayPal relevant.
Tell people you can spend crypto now to draw capital to the platform.
But I guess that's just how capitalism works.