Non-Profit Human Rights Foundation (HRF) Analyzes Privacy, Censorship and Stablecoins
In a recent report released by the Human Rights Foundation (HRF), it was explained that privacy tooling for stablecoins appears to be extremely lackluster.
Privacy coins are cryptocurrencies that tend to have different features to protect users’ privacy while sending and receiving payments.
Lack Of Privacy Solutions For Stablecoins
As per the article, stablecoins are very important for individuals in countries with volatile economies and highly inflationary currencies. Moreover, privacy is a very important tool for people living in authoritarian jurisdictions and where the government controls what individuals do.
According to the report, a larger number of ledgers are being surveilled by the blockchain analysis firm called Chainalysis. With its tools, it is possible for governments to have information about users and traders.
At the moment, the coins covered by Chainalysis represent 90% of all the crypto trading volume in the market. However, there are some tools in the market that would allow users to be protected against these types of analysis.
Privacy tools would need to address the fact that blockchains store past activity as well. This is something that privacy services providers need to take into account.
Although users could eventually move to privacy coins, they do not provide stability to their portfolios. This is why it is important to have the necessary tools for stablecoins to be protected against governmental surveillance.
The HRF explains that these kinds of assets are able to free citizens from capital controls and centralized control. It is worth remembering that Venezuela and Argentina have governments that highly control the FX market and do not allow users to have free access to foreign currencies.
According to HRF, the current stablecoins in the market can be held by users without any problem. However, some of them are more private than others.
The report has also included a list of stablecoins with information on whether they can be frozen if desired. At the same time, they provide data about whether they have an open-source contract if they have basic privacy tools and many other things.
Although it is not a stablecoin, Litecoin (LTC) is working in order to add privacy features to its network and allow users to have a more private experience while using LTC.