Haciyev Reşit 
A new obstacle to the global adoption of cryptocurrency payments has come into focus. Binance founder Changpeng Zhao (CZ) stated that the low level of privacy in on-chain transactions is one of the key factors limiting the widespread adoption of crypto payments. According to CZ, the current blockchain transparency model poses serious privacy risks, particularly for companies and institutions. As discussions continue about the future of crypto payments, this statement is significant in highlighting the technical and structural challenges standing in the way of institutional adoption.
On-Chain Transparency Raises Institutional Concerns
CZ noted that the overly transparent nature of current blockchain infrastructure makes it difficult for companies and institutions to use crypto payments in their daily operations. Because all on-chain transactions are publicly viewable, financial data and business processes can become exposed. In sensitive transactions such as payroll payments and supplier transfers, this creates substantial privacy concerns. For companies, having trade secrets and employee salary information publicly accessible is seen as a major limitation to the practical use of crypto payments.
CZ emphasized that privacy-focused solutions must be developed in order for crypto payments to achieve broader adoption. Under the existing model, if a company were to pay employee salaries on-chain, any user could click on the transaction address and examine all transfers and amounts.
In his statement, CZ said:
“The lack of privacy in transactions may be the missing link in the adoption of crypto payments. The current transparency model creates barriers to real-world usage by companies and institutions.”
This issue is considered particularly risky for large-scale corporations and may be slowing down broader institutional adoption.
Experts: Privacy Solutions Will Play a Critical Role
Industry experts also stress that the development of on-chain privacy technologies will play a crucial role in enabling mainstream adoption of crypto payments. While blockchain’s high level of transparency builds trust for individual users, it simultaneously exposes commercial and financial data for institutional actors. For this reason, innovations such as zero-knowledge (ZK) proofs, privacy layers, and anonymous transaction solutions are expected to gain greater prominence in the coming period.
According to experts, these technologies can allow verification without fully revealing transaction details, helping to strike a balance between security and privacy. For institutional investors and corporations to transition toward blockchain-based payment systems, a sustainable equilibrium between transparency and confidentiality must be established. Achieving this balance could pave the way for crypto payments to be widely adopted not only by individual users but also by global corporations and financial institutions.
Evaluation
CZ’s remarks highlight once again that one of the biggest technical barriers to the global expansion of cryptocurrency payments is the lack of privacy. For institutional use to grow, more advanced privacy solutions in on-chain transactions are essential. Progress in this area could accelerate the transformation of cryptocurrencies from purely investment vehicles into widely used, everyday payment systems.
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