It’s no secret that we are in an era defined by data collection and algorithmic insight. And the concept of a surveillance society is no longer theoretical, but a lived reality impacting everything, especially our financial interactions.
As the lines between public and private blur, the need for privacy in financial transactions has intensified, moving from a niche concern to a mainstream imperative. We sought expert insight from Eric Stanek, a respected mentor within the PIVX Ambassador Program, to tackle fundamental questions around privacy.
1. In your opinion, what constitutes a “surveillance society?”
A surveillance society exists when governments and corporations can monitor every citizen’s activities without justification or oversight. While we already face significant digital surveillance through tech platforms and government data collection, a true surveillance society emerges when this monitoring becomes total and automated. The combination of digital currencies, artificial intelligence, and comprehensive data tracking creates unprecedented control mechanisms that can influence behaviour, restrict freedoms, and undermine democratic principles. This represents a level of societal control that surpasses historical dictatorships in both scope and effectiveness.
2. Why has the concept of privacy in financial transactions become a more pressing issue in recent years?
The development of Central Bank Digital Currencies (CBDCs) represents the most significant threat to financial privacy in modern history. CBDCs enable governments to track, control, and restrict every financial transaction in real-time. We’re already seeing implementations in authoritarian regimes where citizens face restrictions on basic necessities based on their social credit scores or political views. The programmable nature of CBDCs allows for automatic enforcement of spending limits, geographic restrictions, and even expiration dates on savings. Financial transactions reveal intimate details about our lives, relationships, and beliefs; information that should remain private in free societies.
3. How do privacy coins specifically address the challenges posed by a surveillance society in terms of financial freedom and individual autonomy?
Privacy coins utilize zero-knowledge proofs to completely hide transaction amounts, sender identities, and recipient addresses without relying on breakable encryption. This technology creates the digital equivalent of physical cash transactions as only the parties involved know the details. Unlike traditional cryptocurrencies where all transactions are publicly visible, privacy coins ensure that even completely legal activities remain confidential. This protection is essential because financial surveillance can be used to target individuals for their political beliefs, personal relationships, or lifestyle choices, even when no laws are broken.
4. We’ve seen regulators target privacy-centric cryptos. Do you really think there’s a future for such projects?
Privacy coins will survive regulatory pressure because the underlying technology cannot be eliminated, and economic incentives will always favour jurisdictions that embrace innovation. Just as governments couldn’t stop the internet despite its threat to traditional control mechanisms, cryptocurrency adoption continues to grow regardless of regulatory hostility. Competition between nations ensures that some will recognize the economic advantages of crypto-friendly policies. The fundamental properties of decentralized networks make them resistant to complete shutdown, and true privacy protocols represent technological advancement that cannot be uninvented.
5. Are privacy coins essential for protecting civil liberties?
Privacy is a fundamental human right that forms the foundation of all other freedoms. Without financial privacy, individuals cannot exercise true autonomy in their personal, political, or economic choices. As Edward Snowden noted, “Arguing that you don’t care about the right to privacy because you have nothing to hide is no different than saying you don’t care about free speech because you have nothing to say.” History demonstrates that surveillance powers, once granted, are inevitably expanded and abused. Privacy coins provide a crucial check against governmental overreach and ensure that citizens retain control over their personal information and financial autonomy.
6. Critics often link privacy coins to illicit activities. How do you respond to these concerns?
Criminals have always used whatever tools are available — cash, banks, cars, phones, and the internet — yet we don’t ban these technologies because of their misuse. Government agencies and traditional financial institutions, despite extensive AML and KYC regulations, remain involved in the largest financial crimes globally. Privacy coins simply extend the same confidentiality we expect from physical cash to digital transactions. The argument that only criminals need privacy is fundamentally flawed and ignores the legitimate need for financial confidentiality in protecting individuals from theft, coercion, political persecution, and corporate surveillance.
7. Is it possible for privacy coins to exist in a way that balances individual privacy with the need for law enforcement to combat crime? If so, how?
The current system already demonstrates that financial surveillance fails to prevent crime while creating significant risks for law-abiding citizens. Public financial information would dramatically increase crimes like kidnapping, extortion, and home invasion by revealing individuals’ wealth. Privacy coins can coexist with law enforcement through targeted investigation methods that don’t require mass surveillance of all citizens. Exchange interfaces and optional transparency features can provide compliance pathways for those who choose them, while preserving the fundamental right to financial privacy for personal transactions.
8. Do you foresee privacy coins becoming mainstream, or will they remain a niche aspect of the cryptocurrency market?
Privacy will become the defining issue of the next two years as CBDC implementations reveal their control mechanisms to the general public. Major blockchain projects are already integrating privacy features, which will dramatically increase awareness and adoption. Projects like Cardano’s Midnight are investing heavily in privacy infrastructure and education. As surveillance concerns become more apparent and privacy technology matures, the demand for financial confidentiality will drive mainstream adoption. The principle that “a rising tide lifts all boats” applies directly to the privacy coin ecosystem.
9. If you were advising a government on how to approach privacy coins, what would be your key recommendations?
Governments should adopt a hands-off approach: no taxation, tracking, or restrictions on privacy coins. Public officials should use transparent, public blockchains for all government transactions to ensure accountability and eliminate corruption. Private citizens should have access to private transactions to maintain their freedom and autonomy. This approach recognizes that cryptocurrency technology cannot be stopped and will ultimately achieve the separation of money and state. Governments that embrace this reality early will benefit from increased innovation and economic growth, while those that resist will find themselves at a competitive disadvantage.
10. Imagine a future where central bank digital currencies (CBDCs) are widely adopted and highly programmable. How would privacy coins fit into such a financial landscape?
In a CBDC-dominated landscape, privacy coins will likely operate through decentralized exchanges and circular economies, as centralized platforms may be restricted from supporting them. However, the excessive control mechanisms of CBDCs will likely accelerate adoption of privacy alternatives as citizens experience firsthand the limitations of programmable money. Privacy coins will serve as the escape valve for individuals seeking to maintain financial autonomy. The more restrictive CBDCs become, the more valuable privacy coins will appear to users who recognize the importance of financial freedom and personal sovereignty.
11. If you had to design a “perfect” privacy coin, what features would it prioritize, and how would it address current criticisms?
A perfect privacy coin must prioritize usability, security, and regulatory compatibility while maintaining true decentralization. PIVX exemplifies this approach as a privacy-focused cryptocurrency dedicated to being private digital cash for the internet. Essential features include:
- Near-instant transactions for practical daily use, eliminating the delays that hinder adoption.
- Zero-knowledge privacy protocols provide unbreakable transaction confidentiality without relying on potentially vulnerable encryption methods.
- Fair launch principles with no ICO or premine ensure equitable distribution and prevent centralized control by early investors or developers.
- Near-zero fees make the currency accessible to users worldwide, particularly in developing economies where transaction costs matter most.
- FATF/AML/CFT compliance via special ‘Exchange Addresses’ mitigates regulatory concerns while maintaining privacy, demonstrating that privacy and compliance can coexist. Operating without a legal entity structure prevents single points of regulatory failure and government targeting.
- Self-funding mechanisms through community governance ensure long-term sustainability without external dependencies.
- A community-driven meritocracy ensures decisions benefit all users rather than corporate interests, while environmental sustainability through proof-of-stake consensus addresses climate concerns that plague energy-intensive cryptocurrencies.
- Decentralized masternode governance distributes decision-making power across the network, preventing centralized control while maintaining network efficiency and security.
These features collectively create a privacy coin that addresses current criticisms while remaining true to cryptocurrency’s foundational principles of decentralization and individual sovereignty.
Written by Clement Saudu
PIVX. Your Rights. Your Privacy. Your Choice.
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