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Institutional Privacy vs. Consumer Privacy: The Gap Institutions Cannot Ignore

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While privacy tokens like Zcash grab headlines during market turbulence, there’s a quieter but equally important parallel conversation: system-level privacy.

Alex Gluchowski, CEO of Matter Labs (ZKsync), pointed out a crucial distinction that many overlook:

“There is cypherpunk privacy (account-level privacy) and institutional privacy (system-level privacy). Institutions need full visibility over their own flows while keeping that data private from everyone else.”

Why does this matter?

Banks and financial institutions are actively exploring zero-knowledge systems (ZK) to enable private transactions on blockchain. But here’s the problem: they can’t move forward without system-level privacy.

Blockchain transparency is an advantage, but for institutions handling billions in daily settlements, full data exposure is a regulatory no-go.

Reading between the lines

While retail celebrates Zcash, institutions are quietly building more sophisticated ZK infrastructure. This suggests that the next wave of blockchain adoption may not come from headline-grabbing altcoins, but from protocol-level privacy technology designed specifically for institutional compliance.

The question you should be asking: Is the market correctly pricing in this need?

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