Transparent financial systems won’t get real traction, blockchain exec argues

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As the conversation about privacy intensified with the latest Litecoin (LTC) update called Mimblewimble and regulators’ reaction to the feature, Adrian Brink, founder of the Anoma blockchain protocol, weighed in on the topic and shared his views with Cointelegraph.

According to Brink, privacy is an essential tool for democracy because it prevents large corporations from targeting people and dividing them into different bubbles. The founder of Anoma told Cointelegraph that:

“The fact that you have surveillance capitalism allows for such precise targeting that it can put people in their filter bubbles, which erodes democracy very quickly.”
Brink believes that blockchain technology has a solution to this problem. He noted that the space is capable of addressing issues related to financial privacy and eventually moving to a public data privacy solution in the future. Brink said:

“There is a serious attempt to solve the issue of digital privacy because there are a lot of resources being spent innovating around anonymity and using ZKPs as a privacy-preserving technology.”
The founder of Anoma also argued that projects focused on privacy could push cryptocurrency adoption into the mainstream. Brink noted that using a transparent system “essentially means that your neighbor can see how much money you have, and what your daily preferences are,” which is why Brink believes transparent financial systems will not gain traction.

Related: Binance ends support for anonymous Litecoin transactions

Earlier in June, several exchanges in South Korea delisted LTC due to its new promotion called Mimblewimble, which is focused on privacy. Citing Korean financial regulations prohibiting anonymous transactions, Upbit along with four other exchanges have removed the token from their platforms.

Despite privacy conflicts with regulators, privacy is one of the innovations that the decentralized finance (DeFi) community is anticipating in the future. In a thread on the DeFi subreddit, one user shared that he believes privacy-focused projects could become a catalyst that spurs wider adoption.

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