Why untraceable cryptocurrencies are here to stay – EurekAlertNovember 17, 2020
According to a new study from Copenhagen Business School, on the role of privacy and decentralization in the cryptocurrency community, developers are creating cryptocurrencies in such a way that regulatory oversight will not be possible, neither will any wait and see attempt to override them in the future. The research is published in the Journal of Information Technology.
“If decentralized privacy-preserving cryptocurrencies become popular in the future, to the point they can be routinely exchanged without users having to convert to other currencies and systems, there is no obvious way for regulators to impose post-hoc regulation,” says Associate Professor Rob Gleasure from the Department of Digitalization, Copenhagen Business School.
“What the regulators do not realize is those who control the code will control the rules and so far, they have not accepted this and are in denial,” he adds.
“People tend to focus on less controversial systems like Bitcoin, Ethereum, Hyperledger, etc. We shine a light on those developing the most potentially disruptive currencies,” says co-author Dr. Robin Renwick, a research analyst from the Applied Research and Innovation team at Trilateral Research.
The case study concentrated on Monero, seen as the posterchild for this privacy-focused cryptocurrency community. They have been described as anti-establishment and cypherpunk and, according to the U.S. Department of Justice using them is indicative of possible criminal conduct.
The research focused on the privacy attitudes of users, developers, cryptographic researchers, business architects and regulators and adopted a boundary object perspective to make sense of disagreements between these collaborating social worlds.
“What makes this research different is we were able to get good access to users and developers in a community that is not normally researched,” adds Dr. Robin Renwick.
Privacy is personal
“Monero strongly believe the privacy trade-off that allows for our digital transactions to leave an explicit