Robert Bench, Director of Applied Research at the Federal Reserve Bank of Boston, believes that when designing public cryptocurrencies, it is necessary to initially think about privacy.
Robert Bench, speaking at a meeting of the Chamber of Digital Commerce, stressed that the privacy of digital currency transactions is critical “from a technical point of view.” He said:
“We realized that privacy and identity issues need to be taken into account at the earliest stage of the development of digital currencies. If the privacy of transactions is only a side task, then this is not optimal from the point of view of privacy, and most importantly, from the point of view of security.”
Cash has an important function-anonymity. And, when planning state-owned cryptocurrencies, developers often forget about it. According to Bench, digital currencies do not have to be anonymous, but if the developers decide that this is necessary, then you need to work on the issue of privacy from the very beginning.
Tether co-founder Craig Sellars also attended the meeting. He noted that cash has certain properties: interchangeability, confidentiality and anonymity.
“We have to ask ourselves: if we have the technology to preserve these properties of paper money, why should we accept digital dollars with less freedom? I argue that we do not want to accept such digital currencies, and we should not accept them, ” he said.Recall that, as previously stated by analysts at Deutsche Bank, state-owned cryptocurrencies may well replace cash and eliminate intermediaries in the banking system.