Author's Viewpoint: Lizandro Pieper, Research Director of the DeFi Education Fund
"Privacy rights" often become targets for critics who argue that privacy is only necessary for criminals, rather than a right that ordinary people should have to mitigate risks and maintain dignity.
Some individuals in Washington believe that collecting and storing personal information of millions of Americans benefits society and advocate that emerging financial technologies, such as decentralized finance, should adopt such data collection measures; otherwise, they should be prohibited.
This view overlooks the real risks associated with the centralized storage of sensitive data. Information has undoubtedly become the most valuable resource of the 21st century. If information is not protected, others may exploit it to harm individual interests.
Ipsos and the DeFi Education Fund recently conducted a study titled "Decoding Decentralized Finance," which covers qualitative and quantitative data related to the current financial system and decentralized finance. Among several findings, the issue of privacy loss became a core focus.
Specifically, Americans believe that personal financial data is unsafe, and financial privacy is merely an illusion. The survey shows that over 54% of American respondents believe the current financial system does not adequately protect personal information, and 56% think the existing financial system needs reform to give individuals more control over their data. Less than one-third of Americans believe the U.S. financial system is currently safe.
In recent years, the frequent occurrence of sensitive personal information leaks is not surprising. The 2017 Equifax data breach exposed the names, addresses, Social Security numbers, and driver's license numbers of 150 million Americans—almost half the nation.
Since then, data breaches have almost become the norm, with 3,158 breaches occurring in 2024 alone. Criminals exploit stolen identities to control financial accounts, commit fraud, or illegally transfer funds. As a result, respondents believe that protecting financial data is a fundamental right and prerequisite for trusting any financial system. Many respondents mentioned that the continuous news of data breaches makes them feel that their data has long been exposed and is difficult to control.
In addition to data security issues, the American public also expresses concerns about privacy protection in the financial system. In an interview, a resident of Queens, New York, expressed disappointment over the lack of privacy in the financial system, stating that they cannot confidently make large transactions, always feeling monitored or needing to explain their actions.
Another New York resident voiced similar frustrations, pointing out that all their actions are tracked, and they face unfounded accusations of suspicious activity, lacking freedom.
Undoubtedly, the current financial system and surveillance mandates create an environment where we always feel "guilty until proven innocent."
The ongoing monitoring by financial institutions and regulatory agencies undermines our financial autonomy and dignity while failing to achieve national security goals, instead jeopardizing our safety and freedom.
In light of the above, among respondents concerned about decentralized finance, more than half prioritize complete control over personal and financial data security.
The personal autonomy brought by privacy is at the core of decentralized finance, stemming from the ideas of cryptographers in the early 1990s. At that time, the world had just entered the information age, and privacy rights were rapidly eroded due to technological advancements.
As cryptographer Phil Zimmermann stated, "Technological progress cannot keep privacy as it is; the status quo itself is unstable."
Therefore, it is crucial to protect those developers who create technologies that return ownership of personal and financial data to individuals.
Surveillance technology will continue to evolve, and malicious actors will still steal information leaked by it, but we do not have to stand by idly. Decentralized finance is seen as capable of providing practical solutions to these issues, and the American public has shown strong demand for it. Elected officials should prioritize the interests of the American people.
This means Congress must pass legislation to protect software developers from inappropriate and burdensome registration requirements and wrongful prosecutions, and to require the Financial Crimes Enforcement Network (FinCEN) to revoke regulations regarding mixers.
Software developers should be able to continue developing privacy-protecting technologies, and data collection mechanisms should undergo modernization reforms that no longer harm groups that should be protected by law.
If America wishes to continue as a symbol of freedom, it must constantly innovate, serve the people, and uphold the privacy rights of Americans.
Author's Viewpoint: Lizandro Pieper, Research Director of the DeFi Education Fund.
Related: Tether (USDT) and USDC Dominate, with Quarterly Stablecoin Inflows Reaching $45 Billion
This article is for general informational purposes only and is not intended and should not be construed as legal or investment advice. The views and opinions expressed in this article are solely those of the author and do not necessarily reflect or represent the views and positions of Cointelegraph.
Original: “Your Funds, Your Data, Your Choice—Achieved by DeFi”
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
