Because at the end of the day PayPal is better for the average consumer than a solution where somebody needs to handle a private key.
A lot of tech savvy people lost money due to losing their keys. Now imagine the disaster if your mother needs to handle them.
Payment solutions are also heavily regulated, often also in favour of the consumer. If my bank goes bankrupt or gets hacked I have much better garuantees of getting my money back compared to when I lose my private key.
The final reason (in my opinion) that "private key solutions" are not adding much is that to legally use it you need to comply with the regulations for traditional finance. Hosting an exchange without KYC can be considered illigal in many western countries.
Want to advocate for less regulations in finance? Sure, that's a valid political opinion. But you need to go into political solutions for that, not technological ones.
A lot of tech savvy people lost money due to losing their keys. Now imagine the disaster if your mother needs to handle them.
Payment solutions are also heavily regulated, often also in favour of the consumer. If my bank goes bankrupt or gets hacked I have much better garuantees of getting my money back compared to when I lose my private key.
The final reason (in my opinion) that "private key solutions" are not adding much is that to legally use it you need to comply with the regulations for traditional finance. Hosting an exchange without KYC can be considered illigal in many western countries.
Want to advocate for less regulations in finance? Sure, that's a valid political opinion. But you need to go into political solutions for that, not technological ones.