Monero, ZCash, and Dash are making headways as interest in CBDCs by global governments rises.
These coins among others offer privacy for users, ensuring unrestricted financial freedom.

Privacy-centric coins are getting major attention as world governments continue to advance CBDCs. Over the last couple of years, more than 100 countries have begun exploring CBDCs with a few advancing to the point of issuing them. With these forms of digital money-raising concerns, privacy-enhanced coins such as Monero, ZCash, and Dash are gaining prominence.

One of the main concerns with CBDCs is a lack of privacy. Specifically,  if the CBDC shares its data with authorities. In a podcast interview, the head of the Bank of England’s CBDC project, Tom Mutton, assured the public that the data collected by the central bank will not be shared by any government organizations. He stated;

The really crucial thing is that there will be no data shared with The Bank of England – no personal data shared with The Bank of England or the government. We’ll know what transactions happened but we’ll have no idea who did them. The private wallet you use will know who the person is but they won’t know what the transactions were.

According to the head, the bank is taking steps to bring anonymity. Its proposal suggests that the bank will be able to show all transactions but not the individuals involved. He explained;

And that’s a really big difference because, at the moment, financial institutions know both sides of that – the individual and the transaction history. Under our system, we’re proposing we know the transaction history but not the individual, and the wallet will know the individual and not the transaction history. That will give people the assurance that The Bank of England is not collecting people’s personal data.

This proposal is similar to what is already offered by privacy coins such as Monero, ZCash, and Dash. However, while it is still possible for the government to access data through possibly a court order, it is impossible with private cryptocurrencies. In the past, governments have breached the trust mandated by their citizens. For example, if one is suspected of a terrorism-related offense, in most nations they lose their right of privacy.

Monero which is more popular than Dash and ZCash, uses cryptographic techniques, which are far superior in ensuring privacy. Moreover, privacy is mandatory on the network. While anyone can view the millions of transactions, there’s no way of identifying the sender or receiver ensuring complete anonymity.

Related: Monero, Dash, and ZCash Prepare for Massive Upswing as CBDC Race Drives Interest in Privacy Coins

At the time of press, Monero is exchanging for $167 with a market cap of around $3,071,838,486. ZCash on the other hand is exchanging for $29 with a market cap of around $478,007,358 while Dash is trading for $34 with a market cap of nearly $400,000,000.

 

 

 

 

 

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Filed under: Bitcoin - @ June 28, 2023 2:15 pm