PNG Images pixelated when scaled

Summary

When users attach an PNG image, and scale it down. The image will pixelate and looks blurry. The pixelation in images with words is more obvious. Example of images with words in attachments.

Steps to Replicate

1. Create a page.
2. Attach a PNG image, preferably with words.
3. Scale it down.
4. Notice the words are getting pixelated.

Expected Result

The image should remain the same and not pixelated.

Current Result

The image are getting pixelated as they are being scaled down.

Workaround

Use JPG image instead.