Some crypto community members voiced concerns over “freezefunds” and “wipefrozenfunds” in PYUSD’s smart contract.
PayPal’s recent launch of its Ethereum-powered stablecoin, PYUSD, has stirred both excitement and concerns among crypto enthusiasts.
The unveiling of PYUSD on August 7th marked a significant moment for Ethereum, pushing it further into the limelight. This stablecoin, designed with an emphasis on digital payments and the burgeoning Web3 ecosystem, stems from the collaboration of PayPal with Paxos Trust Co., the creator of Binance USD (BUSD).
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As the news spread, Ethereum supporters, including Anthony Sassano and Ryan Sean Adams, were quick to laud this move, visualizing Ethereum as the potential financial backbone of the internet.
According to Etherscan data, Ethereum's daily active users range between 300,000 to 400,000. However, with PayPal's expansive reach, boasting 430 million accounts, the possibility of onboarding over 5% of the global population onto Ethereum becomes conceivable.
The United States House Committee on Financial Services Chair Patrick McHenry shared a statement on August 7th claiming that stablecoins like PayPal’s PYUSD “hold promise as a pillar of our 21st century payments system.”
While some view PayPal's step as a testament to established institutions warming up to cryptocurrency, others have voiced reservations. Notably, the inclusion of “freezefunds” and “wipefrozenfunds” in PYUSD’s smart contract has raised eyebrows among contract auditors, pinpointing them as potential centralization pitfalls in Solidity contracts.
Crypto researcher Chris Blec, along with digital asset lawyer Sarah Hodder, shared these sentiments, hinting at potential censorship capabilities and contract malleability by PayPal.
On the technical front, Patrick Collins, a blockchain engineer, gave mixed reviews, pointing to the use of an older Solidity version and a lack of gas efficiency in the PYUSD contract.
While the crypto community holds its breath to witness PYUSD's impact in the coming weeks, Ethereum's price remains relatively stable, showing only slight shifts since PayPal’s announcement. This development, encompassing potential and apprehensions, showcases the complexities of blending traditional finance with decentralized ideals.
