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PYUSD Review Summary: Code Concerns, Positive Outlook from US Congress Members, Bullish Sentiment Among Ethereum Supporters

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PYUSD Review Summary: Code Concerns, Positive Outlook from US Congress Members, Bullish Sentiment Among Ethereum Supporters

PayPal's announcement of launching a USD stablecoin on Ethereum has sparked heated discussions. Ethereum supporters are naturally excited about this development, but the code "PYUSD" has also raised some concerns.

Concerns Surrounding PayPal's PYUSD: Centralization and Freezing Capabilities

Similar to stablecoins like USDT, USDC, and USDP, independent cybersecurity auditor pashov tweeted the contract code for PYUSD, highlighting its "asset protection features" that allow for asset freezing and removal.

Renowned crypto commentator Adam Cochran also expressed dissatisfaction and disappointment with the centralized mechanism of PYUSD in a tweet.

Audit firm RD Auditors stated that PYUSD's contract is upgradable, meaning deployers can modify the code.

Ethereum Supporters Bullish

Bankless founder Ryan Sean Adams believes this is undoubtedly a significant step for Ethereum, even expressing disbelief in his own tweet content about PayPal deploying token contracts on Ethereum.

He raised several points:

  • The U.S. government is more likely to favor stablecoins

  • PayPal surely issued stablecoins after confirming regulatory compliance

  • With 430 million active users, PayPal, and Ethereum becoming the underlying currency settlement network

Ethereum tech company Gnosis co-founder Martin Köppelmann questioned why PayPal didn't issue stablecoins on L2. However, he later mentioned:

Of course, all public chains are trying to integrate with Ethereum. If you want ubiquity and are willing to bear high costs, Ethereum is the first choice.

Ethub founder Anthony Sassano shared a similar view, stating that while PayPal's stablecoin is centralized, it also demonstrates Ethereum's role as a settlement layer for various values.

House Financial Services Committee Chair: Stablecoins Could Become New Pillar of Payment Systems

House Financial Services Committee Chair Patrick McHenry released a statement after PayPal's stablecoin launch, believing it's a clear signal that stablecoins issued under a defined regulatory framework could become a pillar of 21st-century payment systems.

He reiterated the importance of the "Stablecoin Transparency Act," emphasizing that the U.S. is at a crossroads of digital asset innovation.

Crypto Firms: Importance Comparable to BlackRock Bitcoin Spot ETF

Asset management firm 3iQ's research head told Decrypt that with 4.31 billion users globally, PayPal's impact could rival that of BlackRock's Bitcoin spot ETF.

Hashflow Founder: Attracting Large Enterprises to Embrace Crypto

Decentralized exchange Hashflow founder Varun Kumar pointed out that the adoption of the USD stablecoin PYUSD could propel cryptocurrencies beyond speculation and attract other traditional companies:

This is a step towards mass adoption, and I expect to see more large enterprises following a similar path shortly.