Fiat currencies are operated by a counterparty known as the banking system and they are totally transparent to that counterparty.

In crypto, the counterparty is eliminated but so are the "people". The cryptocurrency money system is just a ledger with numbers. I notice that in your previous posts you've used terms like "you can't see who they sent it to". That implies that you see people as synonymous with blockchain addresses which they are not. Only a private key is directly associated with a blockchain address. Even at that level there's not even any sense in which anyone is associated with a private key other than that they have access to it.

So you cannot see "who" anyone's sending money to even though you can see coins moving between addresses. Any associations can only be inferred. Making that monetary movement invisible doesn't do anything for privacy, it just makes the whole blockchain suffer a loss of integrity and credibility. It's an engine, not a telephone book.


Do you mean I can just parachute in without a "viewkey" and see what's in every address, see which address transfers were made to and from and so on ? Because thats what I mean. As I've described above, that isn't a breach of privacy that's just being able to endorse the integrity of the system. Any money system needs an arbitration layer. In fiat it's the banking system, in crypto it's the public. Take that away and your money's worth nothing. A "viewkey" to see a single account doesn't cut it. This is another area where cryptonote has the systems analysis all wrong. The analogue of the "arbiter" in the fiat system is the banking system itself, not some auditor that comes and visits your office.

The fungibility of the tokens is a different matter. That can be massively improved by embedding what I've called previously a "cash drawer" mechanism or token recycler to keep the whole blockchain at a high level of fungibility so that patterns remain largely random. That's the real challenge here, not obscuring it from view. Your private key is already obscured from view using the most secure cryptology known to man.