Because we don't like it when the government unilaterally acts on our behalf We're not all libertarians and many of us believe that the government has a hand i

Because we don't like it when the government unilaterally acts on our behalf We're not all libertarians and many of us believe that the government has a hand in promoting a well functioning society -- including regulating bank-like entities to be sure that they are a safe place to keep our cash. While I know that Paypal isn't a bank, it's not at all obvious that my money is less safe stored in my Paypal account than in a bank and that if Paypal goes bankrupt tomorrow, I can lose whatever cash I have with them.