Changpeng Zhao, Barry Silbert: Privacy Is the Key Issue for Widespread Crypto Payments

▲ Bitcoin (BTC), Privacy, Surveillance, Security / ChatGPT-generated image

Two heavyweights in the cryptocurrency market have drawn industry attention after forming rare common ground by identifying privacy protection as the decisive obstacle hindering the mainstream adoption of virtual asset payments.

According to crypto media outlet U.Today on Feb. 16 (local time), Binance founder Changpeng Zhao recently argued on social media that the privacy gap is the biggest hurdle facing cryptocurrencies. Zhao pointed out that under the current structure, if companies pay employee salaries in virtual assets on-chain, anyone can check the annual salaries of all employees with just a single click.

Barry Silbert, CEO of Digital Currency Group and chairman of Grayscale Investments, also expressed strong support for Zhao’s view. Sharing Zhao’s post, Silbert conveyed his firm agreement and recently selected privacy-focused cryptocurrencies as the market’s next asymmetric investment bet.

Silbert predicted that within the next few years, between 5% and 10% of Bitcoin’s (BTC) supply could shift into privacy coins. Diagnosing that Bitcoin no longer guarantees anonymity and has entered the realm of data analytics, he suggested that projects such as Zcash (ZEC) and Bittensor (TAO) have significant potential for rapid growth.

The enhanced privacy payment systems emphasized by both Zhao and Silbert are considered a critical task that must be addressed for virtual assets to replace the existing financial system. In particular, if technological improvements are made that protect transaction details while complying with regulations, companies that have been reluctant to adopt crypto payments are expected to begin participating in earnest.

Industry observers are closely watching the fact that influential figures who have pursued different strategies have united around the core value of privacy protection. Market participants are paying attention to whether this emerging consensus could lead to greater institutional interest and investment in privacy-focused projects.

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