To recap :
- You cannot withdraw your Bitcoin
- You cannot Pay anyone ( ironic ) , so it can't even go to another PayPal account
- You dont own the keys
PayPal has made it clear that they will allow withdrawals and payments using Bitcoin, once the testing phase is over. We can expect this by mid-2021. But it is true that they don't allow us to own the private keys. But that is the case with 99% of the cryptocurrency exchanges. If you are using any of these cryptocurrency exchanges, then I don't think that you should be having an issue with PayPal.