In the aftermath of heavily criticized U.S government sanctions against cryptocurrency mixer Tornado Cash, Zac Williamson, CEO of the Aztec Network Ethereum privacy layer, recently discussed what the future of Web3 privacy may end up being. The CEO claims that future networks would most likely not conform to existing regulatory structures but shall instead be consistent with regulators goals while simultaneously protecting user privacy. Essentially, he believes that regulators went about banning Tornado Cash incorrectly and that an alternative solution could have been explored. A foresighted government would therefore contemplate directly issuing base money onto networks such as Ethereum, which, when combined with hyper-fungible real-world assets, private self-custody as well as low barriers to entry from open networks, would usher in a new financial golden age, according to Williamson. He contended that, despite the current sanctions regime, cyber criminals from North Korea or elsewhere would continue to use Tornado Cash or a replica. According to the CEO, suspicious entities will thus undoubtedly provide off-ramps to fraudulent entities who have done the bare minimum for plausible deniability.
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