There is a code that allows PayPal to freeze your crypto assets.

[Saisher]

I don't know why is anyone surprised. I thought that it would work like that since it was announced. Never had plans to use it anyway.

OP is just whining and just confirmed what we know all along, they have been this way ever since nothing new I never trust Paypal they have had a shady business ever since and they always get away in the name of compliance, they want full control they never change and can't change their ways they have centralized ever since and even introducing their own stablecoin will not make them change their terms

[Silberman]

Here you can see the biggest difference between centralization and decentralization. I wouldn't want such a feature to be used in a service, as instead of benefiting you, it could cause more problems. As a crypto user, it's our decision to keep our coins in our own wallet, which is a common sentiment among those who value decentralization and want to have control over their own assets.

What is interesting about the whole thing is that despite obtaining freedoms the likes we have not seen during the last decades thanks to bitcoin, people still want to give that freedom away willingly just to be able to use the stable coin created by PayPal, if they were going to do that then why bother investing in bitcoin and become part of this market? As it seems those people do not really understand or even care about why Satoshi created bitcoin on the first place.

[AmoreJaz]

I don't know why is anyone surprised. I thought that it would work like that since it was announced. Never had plans to use it anyway.

OP is just whining and just confirmed what we know all along, they have been this way ever since nothing new I never trust Paypal they have had a shady business ever since and they always get away in the name of compliance, they want full control they never change and can't change their ways they have centralized ever since and even introducing their own stablecoin will not make them change their terms

the simple way to approach this is indeed not to use their services. of course, this platform is centralised, so what can you expect with how they will do their business?
you can always opt not to use their services if you don't want to. this is not obligatory. however, some users will still use this platform for convenience purposes. but that is their choices.

[doomloop]

What you said in your last sentence is the correct way to do it. Don't trust any exchange. Use them for that purpose only. An "exchange".
Remember "Not your keys, not your coins." Let's not forget that, please.
Whatever coins we hold, let's look for a wallet that supports it first because that's the only security we can have from all these scams that are happening left and right. Without that, we are prone to anything.

But, how will you use them if you don't trust them? And an exchange has different purposes or functions which can include trapping our funds for a certain period time to gain a return. Not all exchanges are centralized but there are also decentralized. However I think they still has a risk so we should be careful. Same goes to the crypto wallets. Having our own keys is not the only security that we can have but we have others too like setting up a 2FA, and so on.. We need to do them as well to have an extra layer of security.

The worst case scenario that I am imagining is your asset suddenly gone in Paypal or any exchange and they can still prove that you don't really have anything in their wallet. That will be fucked up because we cannot fight a battle against big companies like that.

That's indeed worse, and it's not different from scamming already. Aren't they afraid with that? If they continue like this, many people will soon not use their service anymore.

[Xxmodded]

Have biggest difference when saving fund in PayPal and cryptocurrency wallet, although with the same of stable coins holding in PayPal get chance account suddenly freeze depend with PayPal regulation but there are impossible get fund freeze when holding in crypto wallet. PayPal most sensitive place for saving fund, your account immediately on hold and need upload document or KYC to get access back but with crypto still have many kinds of wallet for saving fund without have to KYC.
Simple with PayPal you have make third party for controlling your fund but in crypto when saving in wallet you have own controlling what happen in the future for your crypto assets.

[fzkto]

USDT or USDC also have a function to freeze funds. That is, theoretically any stablecoin can be frozen on the wallet and there is nothing you can do about it. But Tether's stop-list is not big and there are really large sums in it, so I think it is better to choose time-tested stablecoins. I wouldn't trust PayPal.

[FahriZah]

Probably paypal already launched a crypto currency coins that's name of PUSD it’s my little remember can anything mistake but i hope can be changes paypal in crypto currency industry huge opportunity and paypal user can get more benefit from using crypto wallet it’s like one stone 2 birds like this.

[EFS]

I wouldn't trust anything related to Paypal. It's funny how they become pro-crypto after PYUSD launched. They like to control things, but that's not really crypto. I don't trust and hold any stablecoins now but if I had to I would only choose USDC and USDT. Other than these two, I wouldn't touch any stablecoins. If I leave my money in Paypal, I run the risk of it being reset at any time. Even if we don't use Paypal, the majority of people isn't aware of potential problems.

[serjent05]

Just like any stablecoins, Paypal stablecoin can also be frozen.  This simply means that Paypal stablecoin is not different from existing stablecoin.  I just can't comprehend why companies are creating new stablecoins just to have the same features as the existing stablecoins.  This simply shows that these companies are just in for control and money. Hence, I do not find any reason why I will shift to their service when they are just offering the same deal as the others.

[GreatArkansas]

Just like any stablecoins, Paypal stablecoin can also be frozen.  This simply means that Paypal stablecoin is not different from existing stablecoin.  I just can't comprehend why companies are creating new stablecoins just to have the same features as the existing stablecoins.  This simply shows that these companies are just in for control and money. Hence, I do not find any reason why I will shift to their service when they are just offering the same deal as the others.

Agree, Paypal is just a new company that entered the cryptocurrency market, the stablecoin market this time the only different is Paypal is a big company, and OG is in the finance market on the internet. So for me, we already experienced this in most of stablecoins, centralized problem. I also believe that they have reasons why they are doing this.

[el kaka22]

This all alone is not surprising and the fact that it is not surprising is all that we need to know. I feel like we should not put our decentralized currency in a centralized place to begin with, that should be the most important thing that we need to do.

I believe that we need to reach to a point where we could end up with something that would make sense. I hope that we could make some profit from it if we are lucky and I get that it may not be all that great and easy, but we could still make it work one way or another. I understand that life is not that simple but we could still make it work one way or another. "Paypallessness" is not a thing, it would not change anything, we will make due without it as well.

[Silberman]

This all alone is not surprising and the fact that it is not surprising is all that we need to know. I feel like we should not put our decentralized currency in a centralized place to begin with, that should be the most important thing that we need to do.

I believe that we need to reach to a point where we could end up with something that would make sense. I hope that we could make some profit from it if we are lucky and I get that it may not be all that great and easy, but we could still make it work one way or another. I understand that life is not that simple but we could still make it work one way or another. "Paypallessness" is not a thing, it would not change anything, we will make due without it as well.

It is not surprising that paypal is doing this, after all they are looking after themselves and their own benefits, however what it can be difficult to understand is why people still use those services? After all it would be easy to think that anyone that is part of a market that prides itself as being home of the first decentralized currency that those people will try to not store their coins in a centralized service, as that defeats the purpose of a decentralized currency, and yet this is becoming more and more common as we speak.

[Teraboy]

so its the same with other stablecoin that have capability of blacklisting, even more not surprising because its paypal as many have said to be having bad reputation when it comes to this thing, I personally have no problem, since stablecoin isn't only what paypal released and USDT and BUSD is just far better than this one.