Weiss Ratings, ‘Countries Should Adopt Stablecoins Like Monero and Zcash’
According to a Weiss Ratings blog post authored by Martin D. Weiss, PhD and Juan M. Villaverde, while stablecoins like Monero and Zcash pose the risk of high anonymity by criminals for governments, governments should start recognizing the other non-monetary applications of the underlying technology. Furthermore, for countries with unstable governments, these digital assets are of immense importance to citizens.
According to this post, governments want all financial holdings of citizens to be under the control of financial institutions, especially in authoritarian and corrupt regimes. The two risks associated with this are asset seizures and invasion of privacy.
The authors stated,
Privacy DLT is a technology that can guarantee the anonymity and privacy of voters, precisely what’s essential for secure, democratic elections. Thus, the same kind of Privacy DLT that Zcash uses for shielding transactions can also be used to create a fast, efficient, anonymous, and secure voting system.
For example, privacy coin technology can help protect the privacy of personal information. With this technology, users will own their data and this will be protected with advanced cryptocurrency.
Next, it can even make government information safer. It will allow us to split classified information in a million pieces by storing information across different databases.
Weiss explains that privacy coins are powerful because they make it almost impossible for even the most advanced intelligence agencies to know who is conducting the transactions and what the transaction is as well. The post said,
With privacy coins, the only information we can assess is market cap and the sum of all transactions. We can’t know how much and who is involved in each individual transaction.
The authors said that people should use blockchain technology carefully, but also embrace it. They said,
The same privacy technology that can be used by criminals to obscure and disguise their activities can also be utilized by governments, companies, and citizens to encrypt data and deny access to those criminals.
The technology already exists. The bad actors can already use it. Nations need to leverage this technology, rather than suppress it.