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Elixxir CEO David Chaum Claims Market Needs New Solutions to Avoid Vulnerabilities Brought By “CeFi Clans”

source-logo  cryptonews.net 15 November 2022 11:22, UTC
Denis Goncharenko

While making his speech at the Istanbul Blockchain Week global conference, David Chaum, crypto pioneer and CEO of Elixxir, criticized the current situation in the crypto market.

The concentration of assets in the hands of intermediaries, which are centralized exchanges, would sooner or later lead to the situation we observe now, the expert believes. According to Chaum, back in the 1980s, cryptographic solutions were initially conceived as a concept of eliminating intermediation in the exchange of assets. The mass adoption of cryptocurrencies brought centralized players back in the game – the so-called "CeFi clans", and their subsequent collapse is no different from the collapse of hedge funds on Wall Street and even worse than that, David concludes.

“People again give away their assets to third parties and then get angry when they don’t get them back? Young children are taught financial literacy through such examples,” comments David Chaum.

According to the expert, he and his team are working on a new generation of technologies that would eliminate many vulnerabilities in the crypto market and offer new solutions. David noted that Zero Knowledge technology is now fundamental to the creation of new projects.

Also, contrary to the prevailing opinion in the crypto community that CBDCs are a threat to private cryptocurrencies, David Chaum called their development, testing, and implementation “a good trend.” It is worth noting that the crypto pioneer is involved in the project of the Swiss National Bank (SNB), which is about CBDC privacy.