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Saylor Rejects Zcash-Style Privacy for Bitcoin, Citing Risk of Government Shutdown

The disclosure sharpens crypto’s privacy-versus-compliance fight.

Overview

  • Zcash co-founder Eli Ben-Sasson recounts a private exchange in which Michael Saylor argued that adding full privacy to Bitcoin could invite nation-state crackdowns or even efforts to shut the network down.
  • Ben-Sasson counters that cryptographic tools can balance confidentiality and oversight, highlighting shielded transactions with selective disclosure features such as viewing keys.
  • Privacy advocates responded quickly, arguing that encrypted finance is consistent with how society protects messages and files, and warning that transparent ledgers can expose users to surveillance.
  • Institutional signals are building around privacy-focused assets, with VanEck noting rising interest in Zcash and Grayscale filing for a spot ZEC ETF.
  • Other networks are moving to meet demand for confidentiality, with Solana introducing confidential transfers and Ripple exploring privacy add-ons for the XRP Ledger, even as regulatory risk remains a central concern.