Weiss Ratings recently recommended that more countries start using privacy cryptocurrency coins which use Privacy Distributed Ledger Technology (PDLT).
Cryptocurrencies such as Monero and Zcash have made a lot of governments nervous because of their ability to make transactions completely anonymous.
However, Weiss Ratings point out that the privacy offered by these private coins can also be a big boon for personal users in non-monetary ways.
The recent blog post on the Weiss Ratings is authored by Dr. Martin D. Weiss and Juan M. Villaverde. According to the two authors, governments are focused on reducing the amount of cash in circulation and prefer to have fiat money stored in reputed financial institutions.
This can be a problem for those who live under authoritarian regimes. Their assets can be easily seized or their transactions tracked by the government. For these people, Weiss and Villaverde recommend the use of privacy-focused crypto coins.
In a statement, Weiss and Villaverde wrote
Privacy DLT is a technology that can guarantee the anonymity and privacy of voters, precisely what's essential for secure, democratic elections. Thus, the same kind of Privacy DLT that Zcash uses for shielding transactions can also be used to create a fast, efficient, anonymous, and secure voting system
Governments can also benefit from the privacy that these coins present. First, data-mining firms like Cambridge Analytica would have a hard time harvesting information if the technology behind privacy coins is used to ensure data privacy and to stop cyber-meddling.
Second, the distributed ledgers of these crypto coins can also be implemented for other uses, ensuring that there is no central server for hackers to breach to steal information. This can be used both for personal and governmental information.
Privacy Is Powerful
The privacy that these crypto coins present is very powerful. Monero, Dash, and Zcash allow people to perform transactions without anyone else finding out whom they are sending money to or whom they are receiving money from. The only data that these coins release is their market cap and the sum of transactions. The concern is that this financial technology can also be potentially used for criminal ends.
While that is a definite possibility, Weiss and Villaverde insist that placing a blanket ban on such coins is a bad idea. They believe that such a blanket ban would ensure that only criminals get to use privacy coins. The two experts think that a mixed system that allows people to choose whether to entrust their cash to institutions or to handle cash themselves is a better approach. This lets people mix things up so that there is a fail-safe while maintaining transparency. Embracing the technology can help people have privacy while also ensuring governments have more security.
