Privacy is crypto's biggest failing, says ChangeNow founder

Crypto is very good at selling ideals, but falls short when it comes to the practical means to realise them. That is the view of Martin Masser, founder of the crypto exchange ChangeNow, in a conversation with analyst Scott Melker. According to him, privacy is the most important shortcoming that the crypto industry must address.

In brief:

• Privacy is seen as a major shortcoming in the crypto sector
• ChangeNow is working on the integration of privacy solutions
• Transparency of transactions hinders broader adoption

The problem with visible transactions

Masser illustrates the privacy problem with a practical example. Suppose he goes out to dinner with Melker and has to transfer money for the meal. When he uses a crypto address, everyone can see exactly what happens. “You can see that I have been out to dinner, you can see my entire transaction history, and you can actually conclude whether I could afford it,” he explains.

This kind of insight into personal financial habits is impossible in traditional banking. In crypto, however, it is the standard. For many potential users, that is a major objection to switching to digital coins.

The tools are still missing

Although privacy solutions are in development, Masser says the crypto industry does not yet have the necessary tools to truly solve this problem. “We are very good at selling the dream, but not at having the tools,” says Masser. ChangeNow, however, is integrating partners that offer privacy solutions to close this gap.

According to Masser, this next step is crucial for further adoption. As long as users are concerned that their transactions are fully visible, crypto will not be a practical means of payment for many people.