Binance Founder Zhao Says Lack of Privacy Hampers Crypto Payments Growth

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Changpeng Zhao, co-founder of Binance, said the lack of privacy in onchain transactions is the “missing link” holding back mass adoption of crypto payments, spotlighting ongoing challenges for businesses and users alike.

Key Points

Lack of on-chain privacy is cited by Binance founder Changpeng Zhao as a barrier to mass adoption of crypto payments.
Public blockchain data exposes sensitive information, including company transactions and individual salaries.
Experts note the need for solutions that balance transparency and privacy to foster wider adoption.

In a post on X, Zhao illustrated the privacy issue by pointing out that if a company paid its employees in crypto on-chain, both the company’s transactions and individual salaries would be publicly visible.

(Lack of) Privacy may the missing link fоr crypto payments adoption.

Imagine, a company pays employees in crypto on-chain. With the current state of crуpto, you can pretty much see how much everyone in the company is paid (by clicking the from address). 🤷‍♂️ https://t.co/LRmuPHuMMf
— CZ 🔶 BNB (@cz_binance) February 15, 2026

Zhao shared the post on X in response to a short clip featuring himself and investor Chamath Palihapitiya from the All-In Podcast, in which he noted physical security risks tied to the transparency of on-chain transactions.

“I think privacy plays a very fundamental role in our society. But right now, as you said, I also think that Bitcoin and most cryptocurrencies do not have enough privacy features,” Zhao stated. “There are actually real applications where privacy is extremely important. If you book a certain hotel, and people know that hotel’s [on-chain receiving address], they will know that you will be in that hotel,” the Binance founder added.

On-chain transactions are recorded on a blockchain, which is a public digital ledger. Each transaction includes information such as the sending and receiving wallet addresses, the amount transferred, and the time of the transaction. Because blockchains are designed to be trаnsparent and decentralized, this data is publicly accessible and can be viewed by anyone using a blockchain explorer.

Blockchains were designed to record every transaction publicly to ensure integrity and accountability across a decentralized network. This transparency allows anyone to independently verify the flow of funds, detect errors, and confirm ownership without needing a central authority.

By making transaction histories immutable and open, the system prevents double-spending, fraud, and manipulation, which are key challenges in digital finance. However, the same openness that secures the network also exposes detailed financial activity, making it easy to trace payments and balances for individuals or organizations.

As the crypto industry continues to evolve, experts say solutions that balance transparеncy with privacy will be key to encouraging widеr adoption and fostering trust among businesses and everyday users alike.

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Frequently Asked Questions

Zhao argues that without privacy, on-chain transactions expose sensitive information like salaries or business payments, making companies and individuals hesitant to use crypto for everyday transactions.

On-chain transactions are recorded on a public blockchain ledger, showing wallet addresses, amounts transferred, and timestamps. Anyone can view this data using a blockchain explorer.

The main challenge is the lack of privacy. While blockchain transparency prevents fraud, it also makes financial activity visible, discouraging businesses and users from adopting crypto for payments.

MICHAELA

Michaela is a news writer focused on cryptocurrency and blockchain topics. She prioritizes rigorous research and accuracy to uncover interesting angles and ensure engaging reporting. A lifelong book lover, she applies her passion for reading to deeply explore the constantly evolving crypto world.

Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is the official publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser befоre making any investment decisions.

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