Binance Founder Says Crypto Payments Are A 'Problem' As Reddit Post Exposes How USDC Transfers Reveal Entire Wallet Histories
On Thursday, Binance (CRYPTO: BNB) founder Changpeng Zhao weighed in on a growing crypto privacy debate after a post on Reddit Inc. (NYSE:RDDT) showed how sending USDC (CRYPTO: USDC) can expose a user's full wallet history to recipients.
Reddit Post Highlights Stablecoin Privacy Pitfalls
Earlier this month, pseudonymous DeFi trader Ignas shared a screenshot of a Reddit post as "Exhibit 2" to demonstrate privacy risks in stablecoin payments.
In the post, a user said a freelancer they paid in USDC looked up their wallet address and questioned why it held so much of the stablecoin.
The user wrote that it was "awkward" to realize that "anyone you pay can see literally everything," adding that they had not considered the privacy implications until after the payment was made.
The post questioned whether it is possible to send stablecoins without exposing an entire transaction history, noting that tools such as Tornado Cash are now fraught with legal and operational challenges.
See Also: Nature’s NFTs? How These Companies Fractionalize Rare Woods From Trees For Global Trade
Binance Founder Calls Privacy A Structural Issue
Sharing the post on X, Zhao said it underscored "another problem with crypto payments." He noted that, in the short term, using a centralized exchange can shield wallet information from counterparties, though the exchange itself retains full visibility.
Over the long term, Zhao said the industry needs "a proper privacy solution" that allows everyday payments without broadcasting users' financial histories on public blockchains.
USDC is a dollar-backed stablecoin managed by Circle Internet Group, Inc. (NASDAQ:CRCL) and designed to maintain a 1:1 peg with the U.S. dollar through cash and dollar-denominated reserves held at regulated U.S. financial institutions.
The debate comes as Binance's ecosystem expands into consumer-facing products, including prediction markets.
Read Next:
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Photo Courtesy: Koshiro K on Shutterstock.com