PayPal, popular payment service provider based in San Jose, California, has announced the launch of its own stablecoin, called PayPal USD (PYUSD). <a href="https://technicalanalysis.net" rel="noopener noreferrer nofollow">Technicalanalysis </a>reported that this immense expansion marks the firm&#39;s most ostensible foray into the crypto world since 2020.The launch of PYUSD, a crypto-currency pegged to the U.S. dollar that is issued by Paxos Trust, has been widely anticipated to facilitate the mainstream use of crypto for payments, especially with the massive user base of PayPal.Despite this, the introduction of PYUSD faced considerable criticism due to an allegedly inherent security risk related to the “assetProtection” role of the system, which reportedly has the capability to freeze and delete a person’s balance.Labeling this phenomenon as a &#34;centralization attack vector&#34;, some users brought attention to the contrasting values between conventional centralized finance systems and the decentralized way many digital currencies work.To address these uncertainties, David Schwartz, <a href="https://ripplecoinnews.com/" rel="noopener noreferrer nofollow">Ripple</a>&#39;s CTO, took to <a href="https://twitter.com/JoelKatz/status/1688644810259984384" rel="noopener noreferrer nofollow">social media</a> to offer a better explanation. He focused on the extent to which PYUSD is actually centralized, noting that its worth is reliant on PayPal&#39;s responsibility to change it into U.S. dollars.Schwartz addressed the broader discourse concerning decentralization in his explanation that the contentious safety feature was designed to ensure that people who are unaware do not obtain tokens from PayPal that the company is not obligated to reimburse.He pointed out the advantages of the crypto components of PYUSD, which provide users with the opportunity for agile asset exchanges outside of established financial frameworks.

Ripple's CTO Weighs in on PYUSD Security Controversy

RippleCoinNews.com

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