Right now, the simple answer is no – crypto cannot deliver on similar privacy to cash. There are currently too many issues that prevent crypto transactions from replacing the fiat transactions of the current payments landscape. Notably, the fluctuation in the prices of cryptocurrencies makes it unlikely they can be a “main” payment option for most. In addition, any merchant transacting in crypto will need to convert crypto into fiat, relying on an over-the-counter (OTC) service to access liquidity. This means that anyone accepting crypto will either have to be, or partner with, a local regulated exchange that can tap into larger trading volumes – and most exchanges with sufficient liquidity are enacting know-your-customer (KYC) provisions. Further, these payment layers add hidden fees for consumers and create more spots where data could leak.
Can Crypto Deliver on Private Transactions in Cashless World?
