In a time where we observe the relentless growth of the state and consolidation of power into a shadowy word Government, expanding powers of central banks, and the advent of Central Bank Digital Currencies (CBDCs), the need for financial privacy has never been greater. Monero (XMR), a privacy-focused cryptocurrency emerges as a beacon of liberty in a landscape increasingly dominated by surveillance. We have just seen BINANCE Exchange, the now pussy-whipped rent boy of crypto bow down to the pressure from Elizabeth Warren’s crypto army, led by Gareth “Coco the clown” Gensler. The question to ponder today is does any of this matter?
As Governments amass greater control and central banks experiment with CBDCs and the time for their launch draws ever closer, concerns about individual financial privacy have escalated. Citizens are becoming acutely aware of the need to shield their financial transactions from prying eyes and for reprisals from the ‘thought police’ for expressing a non state-sanctioned opinion – e.g the truckers in Canda expressing their constitutional right to protest against the unlawful policies of a tyrannical Government. Monero, with its privacy-centric features, addresses this growing demand for anonymity in a world where personal financial data is under constant scrutiny.
Whilst Monero is not alone in recognizing the importance of privacy. Cryptocurrencies like Zcash and Dash also prioritize user anonymity, but Monero distinguishes itself through its robust privacy protocols. Zcash and Dash provide privacy as an option and are amateur players, whereas Monero is hardcore and the real deal. Monero transactions are confidential and untraceable, employing technologies like Ring Signatures and Stealth Addresses to ensure privacy. This stands in stark contrast to Bitcoin, where transactions are recorded on a public ledger, allowing for potential traceability. Whilst newer coins such as Pirate Coin (ARRR) have built on Monero and arguably have even better privacy technology, no one has the reputation, adoption and longevity of Monero.
Regulatory authorities, most notably the SEC, have exerted pressure on centralised exchanges to delist or avoid listing privacy coins like Monero. Prominent exchanges like OKX and Binance faced such pressures, and even COINBASE chose not to list Monero. However, the long-term impact of these decisions may not be as detrimental as it seems. The essence of cryptocurrency was always rooted in decentralisation, and the regulatory hurdles will only serve to bolster the usage of Monero on decentralized exchanges (DEXs) and make it go back to its roots. Let’s be honest, trading privacy coins on an exchange that forces you to KYC kind of defeats the object, don’t you think?
As regulatory scrutiny intensifies, decentralised exchanges have emerged as the natural refuge for privacy coins like Monero. DEXs operate without a central authority, reducing the risk of regulatory intervention. Users seeking financial privacy may increasingly turn to DEXs to trade and transact in Monero, reinforcing the broader narrative of decentralisation within the cryptocurrency space. Increasingly these same users will be incentivized to self-custody their crypto.
Monero's strength lies not just in its technology but also in the passionate community that supports its development. Open-source projects like Monero are driven by volunteers and contributors worldwide, making it resilient to external pressures. Continuous development, upgrades, and the commitment of the community contribute to Monero's sustainability and relevance in the face of regulatory challenges.
Ironically, the actions of the regulators only serve to strengthen the use case for Monero and cause it to go back to his roots. We can now expect to see much greater use of DEXs and much greater self-custody of Monero. Bravo! As we slowly tiptoe towards totalitarianism, HODL your Monero and lets all metaphorically signal to Gensler, all our mis-leaders and all the centralised exchanges “screw you guys, we don’t need you!” The future of Monero is bright, the future is decentralised.
