– PayPal has launched a new Ethereum-based stablecoin called PYUSD, which has generated mixed reactions from the crypto community.
– Proponents believe that PYUSD could help Ethereum become the money layer of the internet and drive mainstream adoption.
– Critics argue that the stablecoin could undermine decentralization and personal control of assets, comparing it to a poorly designed central bank digital currency.
– The launch of PYUSD is seen as a positive development for Ethereum adoption, as it could onboard a significant number of users onto the blockchain.
– Some lawmakers view PayPal’s stablecoin as a promising component of the modern payments system.
– However, concerns have been raised about the smart contract of PYUSD, which contains functions that could be exploited for centralization attacks.
– Critics also highlight similarities between PayPal’s stablecoin and a censorship-enabled central bank digital currency.
– PayPal’s previous controversial policy regarding misinformation has raised further skepticism about the company’s intentions.
– A blockchain engineer suggests that while PYUSD has potential, certain engineering choices were suboptimal.
– It is emphasized that Ethereum users have the freedom to choose whether or not to use PayPal’s stablecoin.
– PayPal plans to roll out PYUSD in the coming weeks, and the price of ETH has remained relatively stable since the announcement.