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?
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?
It's hard to predict how privacy within the crypto space will evolve over the years. As governments tighten regulations, people will be more inclined towards privacy solutions. Especially in authoritharian countries. I don't think privacy will become a "premium feature" for whales, institutions, and DAOs, though. Coins like Monero and Zcash are "affordable" enough for anyone to start enjoying financial privacy. We might reach a point where privacy will be "abolished" by mainstream governments. But open source and decentralized technologies will render their efforts worthless. Privacy is a human right, after all.
In the distant future, privacy tokens/coins will remain in the shadows as they face backlash from the regulators. We will have blockchains with optional privacy, and a small few with mandatory privacy (embedded at the protocol level). Just like how it's the case right now. Are privacy tokens a dying relic of crypto's cypherpunk past like you've said? I don't think so. They are an essential layer of the next financial internet. Again, people will seek privacy solutions in mass as governments ramp up surveillance efforts. The "fun" is just getting started.
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?
Privacy tokens are the last form of resistance in an increasingly exposed blockchain industry under pressure to comply with regulation. Privacy tokens will be vital in the future, but there is no guarantee they will survive if major exchanges turn their backs on listings. Ultimately it comes down to public demand that if they are interested in staying in the market, they must give up their privacy. Privacy token developers are in a position where they have a gun pointed at their heads and are forced to choose one of two options.Do privacy tokens still have a place in the future of crypto — or will they be sidelined in favor of “regulator-friendly” transparency models?