Post
Topic
Board Altcoin Discussion
What’s the Future of Privacy Tokens in the Crypto Industry?
by
Cryptoddler
on 06/06/2025, 01:04:12 UTC
With increasing regulatory scrutiny and the rise of on-chain transparency tools, I’ve been thinking a lot about the future of privacy tokens like Monero (XMR), Zcash (ZEC), and newer zk-focused assets. They were once a core pillar of the crypto ethos — “digital cash” with true anonymity — but their market share and usage seem to be under pressure.

Yet at the same time…

    🔍 Regulators are tightening KYC/AML policies on public blockchains

    🧠 More crypto users are realizing how traceable most transactions are

    🧱 Tech is evolving (zk-SNARKs, zk-Rollups, FHE) to bring privacy at scale

    🌍 Global demand for financial privacy still exists, especially in oppressive regimes

So the big question is:

    Do privacy tokens still have a place in the future of crypto — or will they be sidelined in favor of “regulator-friendly” transparency models?

Some discussion points I’d love to hear thoughts on:

🔹 Can privacy tokens coexist with compliant DeFi and mainstream adoption — or are they destined to stay in the shadows?

🔹 How do newer privacy-preserving L1s (like Aleo, Aztec, or Namada) change the conversation compared to older coins like Monero and Zcash?

🔹 Is privacy going to be embedded at the protocol level (e.g. Ethereum L2s with optional privacy) — making standalone privacy tokens obsolete?

🔹 Will privacy become a premium feature for whales, institutions, and DAOs — or a basic right for everyone?

💬 What do you think:
Are privacy tokens a dying relic of crypto’s cypherpunk past…
or are they an essential layer of the next financial internet?