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From course:

Blockchain in Modern Trade

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Question:

Problems with anonymity

Author: David Dimonu



Answer:

One of the headline features of Blockchains is the potential for anonymity that they offer. Although anonymity is something that can be engineered into or out of any specific Blockchain, the potential for hiding or obfuscating important information is of concern to governments. Without regulation it is possible for entire economies to operate out of sight, thereby avoiding taxes, fees and financial laws such as those on money-laundering. For example, using crypto-currencies to transfer value across borders could allow for cross-border shipment of goods at lower values attracting lower taxes or tariffs with a secondary payment being made via anonymous crypto-currency to compensate the seller for the true value of the shipment.


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