Changpeng Zhao, co-founder of Binance, says the lack of onchain privacy remains one of the biggest barriers preventing cryptocurrencies from becoming widely used for payments.
Speaking about the current state of blockchain transparency, Zhao argued that fully visible transactions discourage businesses from paying salaries or settling expenses in crypto. Because most public blockchains allow anyone to trace wallet activity, sensitive financial data — including payroll amounts and business relationships — can be easily observed by competitors or malicious actors.
He also pointed to physical security risks, noting that individuals with visible onchain balances may become targets. Zhao’s comments reflect a broader revival of cypherpunk principles, which emphasize encryption and financial privacy as core elements of digital money.
Why Businesses Hesitate to Use Public Blockchains
Corporate adoption of crypto payments faces structural challenges tied to transaction visibility. Public ledger data can reveal operational details such as supplier networks, payment cycles and overall liquidity. For companies, this transparency may expose trade secrets and weaken negotiating leverage.
Industry participants warn that advances in artificial intelligence could intensify these risks. As AI systems become more capable of analyzing blockchain data, the ability to identify patterns and predict financial behavior may increase.
The Growing Case for Onchain Privacy Solutions
Supporters of privacy-enhancing technologies argue that shielding transaction data is essential for mainstream adoption. Without stronger confidentiality tools built into blockchain infrastructure, crypto may struggle to compete with traditional payment systems for enterprise use.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.