Paypal’s new stablecoin has the ability to pause all transfers, freeze addresses to prevent actions and also burn the tokens in the frozen addresses

Here is where you can freely read the whole source code of Paypal's new stablecoin which is named Paypal USD with ticker (symbol) PYUSD: https://etherscan.deth.net/address/0xe17b8adf8e46b15f3f9ab4bb9e3b6e31db09126e#code

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Well everything is transparent and some of the more interesting parts are parts where it can clearly freeze and unfreeze people's accounts. Supply is centrally controlled of course via a Supplycontroller, and probably the biggest thing is that it can freeze accounts and then burn the frozen account's coins. If we get CBDCs you can expect this kind of function in them.

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Here is that ''interesting'' part of the code which states some of these things if you don't want to look at whole source code:

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https://preview.redd.it/xghg9rt2ergb1.png?width=1832&format=png&auto=webp&s=5dc13c24757ecced8ecfd712bd522741b084bbc6

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50 thoughts on “Paypal’s new stablecoin has the ability to pause all transfers, freeze addresses to prevent actions and also burn the tokens in the frozen addresses”

  2. This happens so often with these web2 companies creating tokens, they need to have their control and have no regard for anything else. Good catch and i’m sure news will spread fast to stay away

  3. I will never trust this company to do anything truly beneficial to end users in this space. Everything will be way too centralized for that to ever happen.

  4. I knew PayPal would try to fuck people over, it was obvious

    Their stock is going down since the last years, I hope they burn tbh

    We need to make them irrelevant, crypto has the power to do that. Real crypto

  5. In one hand I like it because it will make it a lot more difficult for scammers, in other I’m worried that they have this much control over our assets.

  6. PayPal hasn’t exactly been a champion of financial self sovereignty in the past – they didn’t allow people to withdraw the crypto they bought through them after all

  8. “… Paypal’s new stablecoin has the ability to pause all transfers, freeze addresses to prevent actions and also burn the tokens in the frozen addresses.”

    – Great. Gonna use this with eBay straight away.

  9. They can already do all that without a stablecoin. I’ve got money frozen on PayPal from 2009 that I will never get back. They just took it, have not used them since.

    PayPal sucks anyway.

  11. For something as centralized as this stablecoin, it’s weird that they have their whole source code openly available. Or is this normal?

  12. This is the main reason that decentralisation is so important in the crypto sphere.

    Don’t want entities to control your funds.

  13. They are not a decentralised entity, so i would believe they need the control over all this.. so its kind of expected.

  14. Paypal executives read 1984 and they were like: “What a great idea if we make stablecoin based on this book”.

  15. These guys (the system) wil get crypto adopted and then pull this bullshit and people will say, “f*ck, I should have gone with BTC or <insert next best altcoin> instead”

    and this is how we get mass adoption

    mark my words!

  16. Everyone hates things like this till someone scams/honey pots them, then it’s “what do you mean you can’t recover my coins!!”.

    Stablecoins are for quick transactions anyways, you can get rid of most of the risk here by just not holding them lol.

    Edit: Not that this isn’t a good call out, just something that isn’t inherently bad.

  18. PayPal has created a CBDC stable where that can exactly do what Countries are planning to do with CBDC 🤨

  22. they want to be involved with cryptocurrency but want to strip it of its main selling points, genius

  24. Given PayPal’s ability to freeze your fiat funds, I don’t see why anyone would expect them to be different with their own crypto

    “Adoption” at the price of centralization I guess

  25. Yeah, I’m going to assume NYDFS requires stablecoins to have a freeze function for standard AML compliance, as part of their BitLicense program. I doubt an American company like Paypal would be permitted to issue the stablecoin otherwise.

  27. This is what adoption by centralized authorities will always look like. Nobody should expect any different

  28. Didn’t PayPal already do this with normal funds, I don’t trust them and I won’t use them.

  30. This company can do all of these things with every paypal account now, with USD. What is the point in even owning a stable coin, especially tied to a company with a horrendous track record of managing customer funds.

  31. Paypal has done a lot of shady stuff as a company, so this does not surprise me. I’ll stick with BTC and hodl.

  32. I think stable coins shouldn’t really be thought of as crypto in the typical sense in terms of decentralization. They are basically just fiat dollars but with the ability to interact with block chains more easily.

  35. PayPal was at the forefront of the trucker bank freeze in Canada. And then they added the user agreement portion about cancelling your account based on your social actions.

    Would you expect them not to do this with a stable? I love crypto, I believe in it as a tool of freedom, but unfortunately stables only leave us “tethered” and chained to the old financial system we want to escape. I’m no Bitcoin maxi but it seems clear it’s the only currency real freedom can be achieved with. The “alt coins” are the replacement for banks and BTC is the currency that makes it happen.

  36. A company that can freeze your account based upon your personal opinions, what can go wrong?

  37. How could you have not seen that coming? This is just the blueprint for for the US CDBC, which will do the same and way more damaging things to privacy.

  42. Damn stablecoins are a lot more sus than I realized. I haven’t used them yet, but I better read up on them a bit more.

  48. Y’all trying to turn a positive for crypto into a negitive by emphasizing what all stable coins have the ability to do.
    SMH

  49. To be honest, as much as I hate PayPal, I’d rather stablecoins be heavily regulated and have a semblance of control. They are to be used as an adoption / way to get into the crypto space with ease. I have never understood why anyone would keep any of these stablecoins outside of them having a good APR.

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