As long its within government reach there are high chances of having maximum surveillance on users. Seeing most stablecoins out there are back by government money shows it users are under watchdog of the authorities.
Lauching PYUSD is not different from the normal CBDC saga we have been seeing all this while its its another tool lauch by private institutions under government control.
Without a doubt. The use of PYUSD is going to be monitored, controlled, and under the thumb of the regulations (governments).