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Ripple CTO: Accusing "PYUSD Centralized Attack Vector Risk" is meaningless, PayPal has a legal obligation to convert it into US dollars.

Odaily News - Cryptocurrency auditor Pashov Krum has raised concerns about the "centralization attack vector" in PayPal's USD stablecoin PYUSD, which includes operations that can freeze or suspend specific address chain functions, such as freezing the transfer function of a particular address and providing more control over smart contract behavior. In response to this, Ripple's Chief Technology Officer David Schwartz pointed out that the value of this centralized stablecoin actually lies in PayPal's legal obligation to exchange PYUSD for US dollars, which helps prevent innocent parties from receiving tokens that PayPal is not legally obliged to exchange, thus reducing the risk. Schwartz believes that currently PYUSD faces three other risks: 1. The risk of PayPal not fulfilling its legal obligations. 2. Users mistakenly believing that they own tokens representing PayPal's legal obligations, when in fact they do not. 3. The divergence between users and PayPal on whether the token represents PayPal's legal obligations. This feature mitigates the above three risks. David Schwartz also pointed out that PYUSD is not a true cryptocurrency, but rather a traditional financial asset, like money in a bank, representing "someone else's legal obligations".
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