Crypto World Welcomes PayPal USD (PYUSD) Stablecoin: Mixed Reactions from the Community

TL;DR Breakdown

  • Huobi Global and BitMart quickly announced support for the newly launched PYUSD stablecoin, with Huobi becoming the first to do so.
  • Despite Paxos backing, the crypto community has concerns about the PYUSD stablecoin’s centralization and potential security flaws in its Solidity v0.4.24 construct.

Description

Huobi Global, a prominent player in the world of crypto exchanges, recently made headlines by announcing its support for the newly launched Paxos-issued PayPal USD (PYUSD) stablecoin. A day after the big reveal by PayPal and Paxos, Huobi became the first crypto exchange to declare its intention to list the PYUSD. A wave of mixed … Read more

Huobi Global, a prominent player in the world of crypto exchanges, recently made headlines by announcing its support for the newly launched Paxos-issued PayPal USD (PYUSD) stablecoin. A day after the big reveal by PayPal and Paxos, Huobi became the first crypto exchange to declare its intention to list the PYUSD. A wave of mixed feelings surged through the crypto community, with many awaiting further announcements from other major businesses.

Huobi Takes the Lead in Listing PYUSD Stablecoin

In its official announcement on August 8, Huobi elucidated its intention to initiate the listing with a PYUSD/USDT trading pair, offering a unique proposition of zero handling fees on an ongoing basis. This move is a testament to the exchange’s commitment to building synergistic relations with quality projects and institutions in the sector. The statement from Huobi read, “Huobi has always been committed to maintaining friendly communication with high-quality projects and institutions in the industry to promote the development of the industry jointly.”

The crypto exchange emphasized its plan to initiate trading the PYUSD stablecoin as soon as it garners enough market liquidity. At the moment, the circulation of the PYUSD stands at 26.9 million.

BitMart Joins the Bandwagon

Close on the heels of Huobi, BitMart, another significant name in the crypto exchange arena, pronounced its decision to primary list the PYUSD stablecoin. The exchange’s strategy mirrors Huobi’s, opting to commence trading with a PYUSD/USDT pair. As a show of readiness, BitMart opened its gates for deposits, with the actual trading slated to start on August 8, 06:00 AM UTC. The exchange also indicated that withdrawals would be operational from August 8 at 10:00 AM UTC.

While Huobi and BitMart have taken the lead, other heavyweight crypto exchanges are still on the fence, having yet to declare their stance on the PayPal USD stablecoin.

Concerns Over Centralization and Security

The introduction of the PayPal USD (PYUSD) stablecoin has undeniably created ripples in the crypto world. However, its reception has been mixed. While the backing of Paxos adds a layer of credibility to the stablecoin, several concerns have been raised by crypto specialists and experts.

The most pressing issues revolve around the centralization and security aspects of the PYUSD stablecoin. Paxos, in its capacity as the issuing authority, retains the power to freeze or confiscate the assets of any holder if mandated by governmental bodies. This factor raises red flags for many in the crypto community, known for its preference for decentralized solutions and financial autonomy.

Further intensifying these concerns is the revelation that PYUSD has been constructed using Solidity v0.4.24. This version of Solidity, a prominent language for writing smart contracts, has been criticized for its lack of scalability, dubious security features, and known backdoors.

Many crypto experts are sounding the alarm, advising the community to tread cautiously. Their recommendation leans towards purchasing Bitcoin and opting for self-custody. This approach, they believe, ensures individuals retain full control of their assets without surrendering their financial autonomy to platforms like PayPal, irrespective of the backing from institutions like Paxos.

Conclusion 

The entry of PYUSD stablecoin has added another chapter to the ever-evolving narrative of the crypto industry. As major players like Huobi and BitMart extend their support, it remains to be seen how the broader community embraces or resists this new entrant. The overarching sentiment, for now, is one of cautious optimism, with many awaiting further developments and clarifications.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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