As this is also described as an identity system I don't see at first glance how identity is going to be done with just this coin. There are a lot of problems for digital identity. How will you solve this?
The main problem that encointer solves is ensuring that every person can get exactly one id, none more. Physical attendance to regular key-signing events with randomized groups of people is required in order to maintain one's id.
Privacy measures are discussed in the whitepaper as well.
Of course there are other aspects to an id system, not discussed in the whitepaper. What would you like to know more about?