TL;DR
- Changpeng Zhao (CZ) warned that the transparency of Bitcoin and Ethereum exposes the salaries and financial data of companies and their employees.
- Artificial intelligence can analyze public transactions, identify patterns, estimate funds under control, and reveal business relationships.
- The adoption of corporate crypto payments depends on on-chain technologies that ensure privacy, such as zero-knowledge proofs.
Changpeng Zhao, founder of Binance, warned that the transparency of public blockchains limits the use of cryptocurrencies for corporate payments. According to CZ, transaction data on Bitcoin and Ethereum allows anyone to check payment amounts, exposing employee salaries and company financial activity. Wallet addresses do not display names directly, but they can be traced over time to identify the beneficiaries.
The executive explained that the exposure of this information creates personal security risks. Individuals holding large amounts of crypto become targets for theft and scams. Every payment transaction is recorded in a public ledger accessible to everyone, allowing anyone to see each employee’s compensation and the company’s cash flows. Visibility also affects information about business partners, supply chains, and payment patterns, which can harm negotiations and financial strategy.
CZ stated that the adoption of cryptocurrencies as a payment method depends on solutions that guarantee confidentiality. The lack of privacy limits their use for salaries, vendor payments, and operations that require data protection. Blockchain projects have tested privacy technologies such as zero-knowledge proofs and advanced cryptographic techniques, but adoption remains partial. For example, Zcash reports 23% usage of its privacy features.
CZ: AI Exacerbates Privacy Gaps
The impact of artificial intelligence worsens the problem. AI tools can analyze large volumes of public data, identify transaction patterns, and build financial profiles of companies and individuals. These systems can detect repeated payments, estimate funds under a company’s control, and reveal relationships with clients and partners. This information can be used for phishing attacks and targeted fraud. AI allows competitors to observe revenue trends and financial activity, increasing the exposure of trade secrets and cash flows.
CZ indicated that on-chain privacy will be essential to enable corporate cryptocurrency payments. Technologies that hide transaction details while verifying their validity would allow payments to remain confidential without compromising blockchain security. Until these protections exist, corporate adoption of crypto payments will remain limited. Companies will not assume the risks of exposing sensitive financial information just to operate with cryptocurrencies.
The current transparency of blockchains prevents salaries and strategic payments from being executed securely. Confidentiality is an indispensable requirement for widespread cryptocurrency adoption
