It has the same problem of every cryptographic (and not cryptographic - see paper) voting system. It's impossible to create a system that assures both a correct result and voter anonymity.
Paper assures none, but has quite strong guarantees on both. I'd settle on some system that assures the result, and has good guarantees of anonymity, what one can create with pseudonyms, but at that point it's a political debate, not a technical one.