Core view
A study published by the Copenhagen Business School showed that regulators are unlikely to successfully block the use of privacy coins in the short term. The report focuses on Monero and points out the disruptive power that privacy coins may bring.
A researcher said that privacy coins will one day be adopted by the mainstream to replace more transparent digital currencies. Rob Gleasure, a researcher at Copenhagen Business School, said that if decentralized privacy-protecting cryptocurrencies become popular in the future, so that users can perform regular exchanges without switching to other currencies or systems, then there is obviously no way for regulators to implement post-mortem supervision. . “
Gleasure believes that the spread of privacy coins may not be prevented in the future, and the authorities can benefit from it by adjusting and preparing. Gleasure added: “What regulators don’t realize is that those who control the rules will control the rules. So far, they have not accepted this and are still denying it.”
A study published by Copenhagen Business School showed that regulators are unlikely to successfully terminate privacy coins in the short term.
The report focuses on Monero and points to the destructive potential of privacy coins.
A researcher believes that privacy tokens may one day replace more transparent digital currencies and become mainstream.
According to a study published in the Journal of Information Technology, due to the anonymous and decentralized nature of tokens, it is almost impossible to try to ban privacy regulators from regulators.
Privacy coins are unstoppable
The report was prepared in collaboration with Trilateral Research’s Applied Research and Innovation team and amplified the popular private coin Monero.
Privacy coins work differently from cryptocurrencies such as Bitcoin and Ethereum-payments cannot be tracked and users remain anonymous. Where every Bitcoin transaction can be easily linked to a user’s address, Monero will use an obscure public ledger to preserve anonymity.
Rob Gleasure, a researcher at the Copenhagen Business School, highlighted the difficulties that regulators may face in stopping privacy coins:
“If decentralized privacy-protected cryptocurrencies become popular in the future, so that they can be exchanged daily without the need for users to convert to other currencies and systems, there will be no obvious way for regulators to implement ex post supervision.”
Gleasure suggested that the authorities would benefit from adapting and be prepared for the inability to prevent the spread of privacy coins in the future. He said: “What the regulator does not realize is that the person who controls the code will control the rules.” “So far, they have not accepted this and denied it.”
Dr. Robin Robinwick of Trilateral Research explained that this study looked at Monero’s developer and user community to draw conclusions. Crypto Briefing contacted Renwick to hear his thoughts on how privacy coins will play a role in the future of the cryptocurrency space.
“I think the government may try to completely ban any cryptocurrency that tries to provide a privacy level higher than the current’status quo’. This will ensure that privacy-protecting currencies become a way to protest the current financial system. Don’t forget that privacy violations and privacy violations have been Become the mainstay of the financial system.”
He also outlined another result, in which the government is increasingly accepting private cryptocurrencies. Renwick said that lax regulations and a deeper understanding of the dangers of transparent coins such as Bitcoin may lead to wider adoption of privacy coins, “like how users became aware of [large high-tech companies like Facebook and Google] ]’S evilness.”
In the two Renwick schemes, although the results of the government’s intervention level recommendations are very different, private cryptocurrencies will still exist.
Given that the entire cryptocurrency field is still in its infancy, it is not clear whether privacy coins can be adopted by the mainstream, nor is it clear to what extent the authorities will try to eliminate anonymous payment systems.
Nevertheless, in recent years, cryptocurrency has become the focus of attention of government officials.
In the past, there has been a lot of discussion about the role that Bitcoin sometimes plays in criminal activities such as money laundering and drug trading, thanks in large part to the prominent position of Bitcoin in darknet markets such as the “Silk Road”.
Since the Silk Road was widely documented, although Bitcoin has been regarded as an asset class in many ways, private cryptocurrency still represents a largely unknown area in the ecosystem. Nevertheless, Monero’s community leader Justin Ehrenhofer (Justin Ehrenhofer) said that the privacy protection of all tokens has become a top priority for many people.
He told Crypto Briefing:
Regulators and compliance professionals should quickly realize that Monero is not the only project that provides useful privacy features. Other “privacy coins” provide inherent or optional privacy enhancements, and they need to be prepared for this. Even Bitcoin and Ethereum, which are widely supported, are adopting new privacy enhancements. These technologies are no longer ignored. “
Many people think that Monero is a de facto privacy coin. Today, its market value totals approximately $2.1 billion, making it the 15th largest cryptocurrency.
