Here on the west coast the Natives have used our cypress (commonly called Yellow Cedar - not a cedar at all though) a lot for paddles. It is easy to work, very stable, light, takes finishes very well and like all members of the cedar/cypress families is nicely rot resistant. It is a bit soft so won't take the beating that Ash or other hardwood made paddles might but paddles are for propelling your canoe not bashing rocks.
A buddy of mine makes nice paddles from it and swears by it. I wouldn't hesitate to use it but to be truthful I haven't made any with it as any good stuff I get goes into Flamenco guitars.