The following is a guest post and opinion from Matthew Niemerg, Co-Founder of Aleph Zero.

I’ll be frank: I’m not exactly thrilled with where European politics seems to be heading these days. It was hardly a shock, but still disappointing, to hear that Apple is now partially dropping end-to-end encryption for its UK users. This move, spurred by the UK government’s pressure under the Online Safety Act, feels… unsurprising, to put it mildly. Instead of taking the globally harmful route of weakening encryption itself or creating backdoors, Apple’s chosen to remove end-to-end encryption specifically from UK iCloud accounts. To call this attempt by the UK government to undermine privacy “misguided” is me really holding back.

The False Logic of “Nothing to Hide”

Governments and regulatory bodies seem to keep falling back on this tired, and frankly, ridiculous idea: “If you’ve got nothing to hide, you’ve got nothing to fear.” This isn’t just silly; it’s actually dangerous because it completely misses the point of privacy. Privacy isn’t about keeping secrets if you’re doing something wrong. It’s about having control over your own personal information in a world that’s becoming obsessed with collecting data. Financial privacy, especially, is a fundamental part of being an independent individual. Yet, when it comes to digital currencies, this basic right is often treated with suspicion.

Edward Snowden put it best when debunking this flawed way of thinking: “Saying you don’t care about privacy because you have nothing to hide is like saying you don’t care about free speech because you have nothing to say.” Our rights aren’t just valuable when we personally need them at that exact moment. They are there as protections against the inevitable overreach of power. We need to safeguard them even – and especially – when we might not immediately think we need to.

The actual reality of how crypto is used completely undermines this flawed argument. Chainalysis’s 2024 report on crypto crime found that only a tiny 0.34% of all crypto transactions are linked to illegal activities. Just let that number sink in for a second. Over 99.6% of crypto transactions are perfectly legitimate. This is a huge contrast to the moral panic that often surrounds blockchain privacy features, with the Tornado Cash saga being a prime example. If we applied this same level of intense scrutiny to cash, we probably would have banned physical money a long time ago.

Privacy is a Legitimate Concern

Privacy in crypto isn’t some niche desire; it serves so many real and valid purposes. Think about negotiating your salary. Would you really want your potential new boss to be able to see your entire financial history? Or what about medical expenses – should your medication purchases just be out there for anyone on the blockchain to see? Donating to causes, whether political or charitable, has always been a protected right in democratic societies. Without privacy, these essential activities become vulnerable to monitoring and control.

And there are some things that simply wouldn’t be possible at all without strong privacy measures. Confidentiality is essential for business deals. Companies can’t function properly if their competitors can track every single transaction and figure out their strategies. Efforts to include people financially in places with oppressive governments would fall apart if authorities could just track and block aid to vulnerable groups. Journalists protecting their sources, activists seeking funding, and organizations operating in risky areas – they all depend on private transactions just to be able to do their work.

If we seriously want to move more of these kinds of activities onto the blockchain, then privacy isn’t optional – it’s a must-have.

Now, let me be clear, neither I nor anyone at Aleph Zero are advocating for complete anarchy. We understand and comply with KYC and reporting rules in the U.S. and other places. But there’s a massive difference between being transparent and accountable to the right authorities, and having your entire financial life exposed to anyone and everyone. Privacy infrastructure needs to be in place so that compliance is meaningful and not just forced, total exposure. Shielder is a great example of this idea: transactions are private from prying eyes, but users still have the ability to reveal their identity to exchanges or KYC services when it’s necessary.

We Already Have Private Finance, Why not Crypto?

One of the most basic expectations we have for privacy in crypto has to be shielded tokens and transactions – keeping private what you own and who you’re sending it to. This isn’t some radical demand. It’s exactly what we already take for granted with our regular bank accounts. Your neighbor can’t just peek at your bank balance. Random people can’t see who you paid on Tuesday. But somehow, when blockchain offers these same essential protections, it’s suddenly portrayed as “enabling criminals” instead of simply restoring a basic level of dignity.

There’s a really solid philosophical basis for this stance. As stated in the Universal Declaration of Human Rights, privacy is a fundamental human right, not a perk. Our financial transactions reveal incredibly personal details about our lives – our health issues, our political leanings, our personal relationships, and so much more. The right to keep these things private is essential for individual freedom. Historically, cash gave us this privacy by default. Crypto with privacy features is just bringing this same principle into the digital world.

Furthermore, decentralization challenges the power that’s currently concentrated in the hands of a few. By spreading control and information across many participants, instead of concentrating it in banks or governments, privacy-focused crypto creates a more balanced system. This idea goes all the way back to Enlightenment political thought and modern libertarian views – centralized power almost always leads to abuse, while decentralized systems offer inherent safeguards.

Privacy in blockchain isn’t a flaw; it’s a key feature. It’s not a tool just for criminals; it’s a right for everyday people. As we navigate the complex world of digital finance, we need to push back on this false choice between security and privacy. They aren’t opposites; they actually go hand-in-hand. A truly secure financial system doesn’t just protect our money, it also protects our dignity, our independence, and our freedom. And ultimately, it’s privacy that makes that dignity possible.

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