Amazon, Walmart Stablecoin Plans Spark Privacy Concerns

- Privacy risks on public blockchains could block stablecoin adoption. - Blockchain transparency exposes both consumer and enterprise data. On July 28, 2025, Cointelegraph reported that non-financial giants like Amazon and Walmart are actively exploring their own stablecoins. These corporations aim to reduce transaction costs and eliminate intermediaries; however, their ambitions heighten concerns about the privacy risks of blockchain technology. Fahmi Syed, president of the Midnight Foundation, expressed these concerns in an opinion piece, warning that public blockchain networks could compromise the privacy of consumers and businesses by exposing sensitive transactional data. Public blockchains permanently record all transactions and make them accessible to anyone, which presents serious privacy implications. For consumers, it means their financial activities—such as subscriptions, purchases, or even medical appointments—could become public. For businesses, the risks are equally significant, as competitors might gain access to valuable data like pricing strategies, customer spending trends, and real-time revenue metrics. Syed argues that these transparency issues may make stablecoins unappealing for both users and enterprises. Although interest in stablecoins is growing, regulatory frameworks have focused primarily on financial oversight, not data privacy. Initiatives like the GENIUS Act address financial stability and anti-money laundering but fail to tackle the privacy challenges of immutable blockchain records. Syed argued that without strong data protection, stablecoin adoption could stall, as organizations and users will hesitate to embrace systems that expose their financial trails. To solve these issues, Syed advocates for privacy-preserving technologies like zero-knowledge proofs (ZKPs). These advanced cryptographic methods let parties validate transactions without revealing sensitive information. For instance, ZKPs can facilitate shielded balances and selective data sharing while still aligning with compliance mandates. Taurus, a Swiss crypto custody firm, provides a practical example, having added a ZKP layer to Circle’s USDC stablecoin that enables encrypted transfers and balances. Syed’s Midnight Foundation champions privacy-centric blockchain solutions, such as the Midnight network, a system that uses zero-knowledge proofs to enable confidential transactions, smart contracts, and decentralized applications. Researchers are now working to integrate ZKPs into stablecoins to balance privacy with regulatory requirements. Some proposals suggest implementing different privacy levels, which would offer cash-like anonymity for small transactions while ensuring regulatory oversight for larger ones. As of July 28, 16:15 UTC, PayPal USD (PYUSD) is trading at $1, with a 0.039% change in 24-hour volume. Tether USDt (USDT) is also valued at $1, reflecting a -0.022% change in 24-hour volume. Meanwhile, USDC (USDC) is trading at $1, recording a 0.008% change in the same timeframe.