Zcash (ZEC), a privacy currency launched in 2016, unveiled an update to its system on May 31 that makes it easier for users to make personal, unreliable digital money payments on mobile phones. Not everyone would see this as a good development.
The ignorance, uncertainty and uncertainty of the public around privacy – including its complexity, abuse and speculation – presents a number of challenges and reputational problems for innovation cryptocurrencies. While a core issue and source of pride among cryptocurrencies such as Zcash, privacy has been undermined by those in power, including lawmakers, regulators, banks and academics.
Yet frequent intrusions and data breaches show that the need to protect privacy is more important than ever. This is where cryptocurrencies can enter the conversation and speak for this important consumer protection by using privacy-oriented tasks.
Connected: What are privacy currencies and how are they different from Bitcoin?
Consumer attitudes and corporate wrongdoing
The feeling of the need for data and financial privacy went into the general stream when unusual revelations about the 2017 Equifax breach came to light. The most sensitive financial information of almost all US households was provided to third parties without their knowledge or consent – and was not properly protected.
Americans have long been misled by our most sensitive financial information. Due to Equifax’s negligence, we now know how vulnerable our privacy and financial security really are. Things have only gotten worse in the next few years. Nearly 294 million people were affected by data breaches in 2021, with more than 18.5 million data uncovered. This was the worst year for corporate data breaches since 2017.
Take away: The cryptocurrency industry needs a villain. We need a drumbeat of preventive expansion for general consumers to remind them of the unethical practices of companies that both fail to protect their information and use it on deception. But it can not be a “tear everything down and get out of the system” message. We also need to educate people about how Web3 prevents this from happening but puts control over its data.
Connected: Loss of privacy: Why we have to fight for a fragmented future
The scandal surrounding the loss of control over our financial information drew the attention of politicians, some of whom said that “financial records must have the same confidentiality as medical records.” But what exactly came out of this rhetoric? Not much. As Cristiano Lima of the Washington Post put it:
“Although there is general agreement that the parliament needs to do more than talk – especially to set rules on the collection and use of consumer data – action has remained unmanageable.
Why is this important? Americans cannot rely on legislators to protect their privacy.
Take away: Americans are increasingly frustrated with Big Tech and confidence in the government is at an all-time low. There is an opportunity to drive a wedge and take advantage of these feelings, but at the same time striking “immunity first” narrative that allows Americans to seek protection on their own.
The messaging tasks that need to be put in place are threefold: 1) why people should want and need everything from their data to text messages to be private messages; 2) how much of our legitimate financial rights – and thus our financial destiny – have been compromised and removed from our control; and 3) Privacy is a constitutional right that the majority of Americans want
Connected: Self-care, supervision and identification: How regulators misunderstood
Prejudice against cryptography
But we have to address the gorilla in the room. The conversation about privacy has been under a lot of scrutiny by the media, law enforcement and various regulators and we are losing the battle to define our own industry. Take this quote from Senator Elizabeth Warren:
“DeFi is the most dangerous part of the world of cryptocurrencies. […] This is where the scammers and scammers and scammers mingle among part-time investors and cryptocurrencies for the first time.
The common denominator of these attacks is that they take encryption privacy – its revolutionary development as an almost inseparable way to protect their users’ identities and financial information – and position it as extremely negative. Outline: Privacy projects are designed as tools for drug trafficking, suspicious transactions and avoid law enforcement, regulators and tax collectors.
Take away: If this privacy statement goes unanswered, privacy-focused cryptocurrencies will not only rob them of their branding but also expose them to further scrutiny, negative publicity, research and possible legal action – all of which could prove detrimental to their longevity and longevity. Inaction is not an option.
Connected: In defense of cryptography: Why digital currencies deserve a better reputation
Unfortunately, we have failed to plan and create a plan for the entire industry that will resonate with our target audiences and increase our mobility. Until we do this, we will allow others to define us, which could lead to our death.
So we have to standardize privacy, replace it, and, last but not least, get allies in our cause. To do this, privacy advocates and advocates – inside and outside the cryptocurrency – must come together under a united stronghold.
This article does not include investment advice or advice. Every investment and trading business involves risk and readers should do their own research when making a decision.
The views, thoughts and opinions expressed herein are the sole responsibility of the authors and do not necessarily reflect or represent the views and opinions of the Cointelegraph.
Trey Ditto is the founder and CEO of DittoPR. Trey is a former Associate Press reporter and former Assistant Secretary of State for Culture, Margaret Spellings, as well as one of the leaders in the cryptocurrency industry.
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