After a post on Reddit revealed how USDC transfers expose the entire wallet history, Chambers Zhao (CZ), the founder of Binance, commented on a discussion about privacy in cryptocurrencies. The Reddit post, shared by an anonymous DeFi trader named Ignas, included a screenshot of a user who paid a freelancer using USDC, after which the freelancer searched for the wallet address and inquired about why it held a large amount of USDC. The user described the situation in the post as "embarrassing," realizing that "anyone you pay can literally see everything," and he didn't consider the privacy implications until after the payment. The post questioned whether it was possible to send stablecoins without exposing the entire transaction history, noting that tools like Tornado Cash are now facing legal and operational challenges. Zhao shared the post on platform X, stating that it highlights "another problem with cryptocurrency payments," adding that the short-term solution is to use a centralized platform, where wallet information is protected from the other party, but the platform itself retains full visibility. Long-term, Zhao said the industry needs a "real privacy solution" that allows for daily payments without broadcasting users' financial history on a public blockchain. USDC is a stablecoin backed by the dollar, managed by Circle, and maintains a 1:1 peg to the US dollar through cash reserves and dollar-denominated assets held in regulated U.S. financial institutions. This discussion highlights structural privacy issues in crypto payments, where public blockchains reveal financial history, allowing recipients to access full wallet information.
