A simple crypto payment turned awkward fast. Someone paid a freelancer in USDC, then realized the other person could look up the wallet address and see far more than the payment. They could see the wallet balance, transaction history, and everything sitting on chain in plain view.
That moment captures a bigger issue with crypto payments. Transparency is useful for verification, but it can feel intrusive when money moves between real people.
CZ weighed in on that exact problem, saying centralized exchanges can avoid it in the short term, even though the exchange still has the information. Long term, he pointed to the need for a proper privacy solution.
Kaspa is now being discussed as part of that long-term direction, not as a privacy coin, but as a base layer designed to stay simple and verifiable while leaving room for privacy tools to live above it.
This is another problem with crypto payments. Short term, using a CEX avoids it (but the CEX will have that info). Long term, need a proper privacy solution. https://t.co/3W9zdA12ea
— CZ 🔶 BNB (@cz_binance) December 18, 2025
What you'll learn 👉
Crypto Payments Show Wallet Balances Too Easily And CZ Says Privacy Still Lags
Crypto payments sound simple until someone realizes how public most chains are. Sending stablecoins from a single address often links past activity, current holdings, and sometimes future behavior if the same wallet gets reused.
CZ framed it as a structural issue rather than a user mistake. Short term routing through a CEX can reduce what the other party sees on chain, yet the cost is obvious. A third party still holds the data, and that solution does not scale as a default way to pay.
That is why the conversation keeps returning to privacy, not only as a feature, but as a missing layer for everyday payments.
Kaspa Approach Keeps Base Layer Transparent While Privacy Tools Sit Above
Kaspa supporters have been making a technical argument that privacy should not live inside layer 1. FKAS Official Kaspa Community Token described transparency as an architectural requirement, similar to how Bitcoin works today. Consensus rules stay easy to verify, nodes stay cheaper to run, and the chain stays readable for exchanges and infrastructure providers.
Privacy inside layer 1 can introduce tradeoffs that become hard to unwind later. Heavier verification, higher node costs, and more complex cryptography can make the network harder to maintain. Regulatory pressure can also become part of the story, especially when privacy is inseparable from the base chain.
Kaspa framework tries to separate those roles. Kaspa stays neutral and auditable at layer 1, then privacy becomes modular above it through wallet features, payment layers, or selective disclosure systems that can be adopted without changing the foundation.
UTXO Structure Gives Kaspa A Cleaner Path Toward Private Payments
Kaspa uses a UTXO model instead of an account based model. That matters for privacy discussions because UTXO outputs behave like discrete objects rather than a single public balance that updates over time.
Why Kaspa Is an Ideal Foundation for Private Payments (Technical Perspective)
— FKAS — Official Kaspa Community Token (@FKAS_Official) December 18, 2025
Yes, Kaspa is fully transparent today.
Just like Bitcoin.
That is not a flaw — it is an architectural requirement.
Base-layer transparency is essential for:
verifiable consensus,
independent rule… https://t.co/vMyPxb9yqo pic.twitter.com/pwOedIoPK9
That structure can make it easier to design payment flows where linkability is weaker, coin control is more natural, and stealth style receiving patterns can be layered on top. Account based systems can still pursue privacy, yet the path often leans on heavier constructions since balances and state are globally visible by default.
Kaspa does not magically hide activity today, yet UTXO structure can offer a friendlier base for privacy tooling that aims to reduce how much a simple payment reveals.
BlockDAG Throughput Could Help Kaspa Privacy Layers Scale Without Queues
Kaspa is often described through BlockDAG and speed, but FKAS framed that as more than marketing around transactions per second. Parallel block production and deterministic ordering can keep throughput high and reduce bottlenecks.
Privacy systems such as mixing style flows, aggregated payments, or layer 2 payment pools tend to work better when transactions do not fight for limited block space. Higher throughput can also weaken certain traffic analysis techniques that rely on timing and congestion patterns.
Kaspa design does not guarantee privacy on its own, but it may provide the kind of fast settlement environment that privacy layers need to feel usable, especially for everyday payments.
Read Also: ADA Holders Foot the Bill as Cardano Bets Treasury on Midnight Network
Kaspa price and KAS price can move for many reasons, and this privacy conversation does not automatically translate into a market move. The more interesting shift is narrative. Crypto payments are getting judged on real life friction now, not only on speed and fees.
CZ pointing out the privacy gap brings the topic closer to the mainstream, because it highlights a problem regular users run into without planning for it. Kaspa is being positioned as a base layer that stays transparent and exchange friendly, while still leaving space for privacy to exist as an optional layer rather than a forced default.
Curiosity now sits with what a proper privacy solution actually looks like for stablecoin payments, and which chains end up supporting that future without breaking everything else that makes payments reliable.
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