PYUSD Feels Like Fiat 2.0 — Useful, But Is It Really “Crypto”?

[Harry]

It’s concerning how PYUSD seems to be more of a Web2-centric tool rather than something that truly integrates into the broader crypto ecosystem. The lack of control over your keys and its limited compatibility with DeFi platforms really limits its potential for those of us who value decentralization. If it’s just a way for PayPal to keep its users within their own ecosystem, then it feels like it’s missing the point of what crypto is all about. I’m genuinely worried that this could end up being just another centralized fiat option that doesn’t contribute anything meaningful to the crypto space. It’s a bit frustrating to see a big name like PayPal entering crypto and still playing by Web2 rules.

Your concerns about PYUSD are valid, especially given its centralization and limited integration with DeFi platforms. While PayPal’s entry into crypto could drive adoption, the lack of control over keys and its focus on maintaining a closed ecosystem may hinder its broader potential in the decentralized space. It’s important to keep an eye on how this develops and whether it evolves beyond Web2 limitations.