Odaily Planet Daily News encrypted smart contract auditor Pashov Krum proposed that PayPal’s US dollar stablecoin PYUSD has the risk of “centralized attack vectors”, including operations used to freeze or suspend functions on the chain of specific addresses, such as freezing the transfer function of an address and can Provides more control over smart contract behavior.
In this regard, Ripple Chief Technology Officer David Schwartz pointed out that the value of this centralized stable currency is that PayPal has a legal obligation to convert PYUSD into US dollars, which helps prevent innocent people from receiving tokens that PayPal has no legal obligation to convert, thus reducing risk.
Schwartz believes that PYUSD currently has three other risks: 1. The risk of PayPal not fulfilling its legal obligations. 2. Users mistakenly believe that they own tokens representing PayPal's legal obligations, which is not the case. 3. There is a disagreement between the user and PayPal as to whether the tokens represent PayPal's legal obligations. This feature mitigates the three risks mentioned above.
David Schwartz also pointed out that PYUSD is not a real cryptocurrency, but traditional finance, like money in the bank, is a "legal obligation of others."