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Bitcoin price reached a particular point but that did not deter Monero (XMR) and ZCash (ZEC) to increase. Both XMR and ZEC have increased by approximately 8% in the past 24 hours. With this increase in both the privacy-focused cryptocurrencies, they can easily be crowned some of the best-performing digital assets of the day.
The growth in the prospects of the cryptocurrencies came at a point when the US government has stated clearly it will be basing its target on Encryption and privacy. This is an important development since, in the world of decentralized finance, technologies are being researched to keep everything transparent yet secure from sleuths. In today’s world companies are vying to embed safety of the public in system designs which may go one to harm privacy, and this is where decentralized systems gain footage as they tend to be anonymous.
Monero as well as Zcash are known to be privacy coins that can live up to what the government desires. But it’s value could decrease in the future as many government agencies and top financial watchdogs are vying to get into its system and obscure its technologies.
Source: Trading View
When the US government made this announcement the analyst believes that the rally was due to this and that companies now should think of installing tailgate encryption systems.
In a statement released on October 11th, the Department of Justice said:
“We call on technology companies to work with governments to take the following steps, focused on reasonable, technically feasible solutions: Embed the safety of the public in system designs… Enable law enforcement access to content in a readable and usable format where authorization is lawfully issued… Engage in consultation with governments and other stakeholders to facilitate legal access.”
Monero And Zcash already have an upper hand considering they have deployed technologies which means that backdoor cannot be installed without people taking note of it.
Many people including Matt Odell, a very well-noted Bitcoin podcaster and privacy advocate did not take this very well. Over this new update and information he commented that even if there are encryption bans, it will not prevent the miscreants from using the system. They will do everything they can and use encryption to complete their tasks. He further added that a simple encryption ban may be harmful and hurt those citizens who abide by the law. With such measures, they as well as the system will become completely vulnerable to these people who pose harm.
But, what needs to be noted is that decentralized technologies do not have the need to implement this backdoor. It is known that the government and authorities have already decided to get into the system of Monero and Zcash which are under the ire considering their system design. A few weeks ago, it came into the knowledge that the Internal Revenue Service was granting $625,000 grants to developers, contractors as well as those who were able to get through the technologies employed in Monero and Lightning Network to get into their system.