Privacy is Fungibility: Why Endogenous Tokens Are Not Money
Why most cryptocurrencies don't work like real money
Most cryptocurrencies fail a fundamental test of money: they don't protect users' privacy the way cash does. The researchers show that blockchain ledgers expose transaction details in ways that create harmful power imbalances between parties, even when encryption is added on top. This means cryptocurrencies and stablecoins built on these systems are missing something essential that makes money actually work.
If cryptocurrencies aren't functioning as real money, they can't fulfill the role their backers envision—whether as payment systems, stores of value, or alternatives to government currency. This affects how regulators should treat these assets and what users should realistically expect from them. It also matters for anyone considering stablecoins or blockchain-based central bank digital currencies, since the underlying ledger design creates privacy vulnerabilities no amount of encryption can fully solve.