In today’s technologically advancing world, “Security” and “Privacy” might be two of the most used buzzwords. The greatest technological minds, tech companies, and governments are working overtime to figure out what the right path is to achieve security and privacy at the levels of individuals, businesses, and governments. The same debate gets intensified when cryptocurrencies come to the picture, owing to their novel and abstruse nature.
Cryptocurrencies, in general, bring in a high level of privacy and security. However, this is a common misconception. Popular cryptocurrencies like Bitcoin and Ethereum, however, are far from being fully anonymous. Even cryptos that market themselves as “Privacy Coins” are traceable.
There is a dire need for an avenue that offers true privacy while being secure at the same time. Additionally, it should be compliant with the laws of various nation-states.
Privateum Can Provide a Solution to Security and Privacy
Privateum prides itself to be the world’s only private, secure, global, and sustainable fintech crypto platform. The newly launched cryptocurrency offers two solutions for privacy-enabled electronic value exchange:
- Institutionally supported privacy-enabling cryptocurrency
- Institutionally mediated private value exchange
In the first approach, institutionally supported privacy-enabling cryptocurrency provides regulated institutions with tools and procedures for interacting with privacy-enabling cryptocurrencies, creating a structure for legal interpretations of their use.
The second approach, institutionally mediated private value exchange, establishes a method where regulated institutions can conduct financial transactions on a distributed ledger that shares essential characteristics with privacy-enabling cryptocurrencies.
Both approaches need the design, implementation, deployment, and maintenance of new technology as well as the development of regulatory policy in which such technology will operate.
Treading the Line Between Privacy and Compliance
The team at Privateum believes that institutionally supported privacy-enabling cryptocurrency will be strictly better than privacy-enabling cryptocurrency without institutional support, mainly because regulators would benefit from the ability to monitor corporations and registered businesses that use cryptocurrencies.
Additionally, they also suggest that institutionally mediated private value exchange would be strictly better than modern retail banking as currently practiced, mainly because users would avoid payment networks and enjoy an improved expectation of privacy in their ordinary activities.
However, neither approach achieves all of the end objectives of both parties and needs to be worked upon in phases, which Privateum is doing with industry-leading precision.
The first step aimed to build connections with global institutions will be to establish a Cooperative in a jurisdiction that is friendly to cryptocurrencies. These cooperatives will evolve into multi-tier international initiatives.
Due to the nature of that particular type of legal entity, cooperatives can be divided into several sectors, each sector having one vote in the annual meeting of participants. Each of these sectors can be represented by a chartered lawyer. Members and users of the particular sector can be protected by an attorney-client privilege to provide a proxy KYC representation.
Cooperative Business Model to Achieve True Decentralization
In principle, Privateum has created the crypto market’s first financial platform to integrate banks, insurance companies, borrowers, lenders, stores, small businesses to medium and large enterprises, all within one global system. All this while developing a proprietary privacy and security infrastructure that protects all those in the cooperative operating within its ecosystem. Privateum’s approach is based on the philosophy of mutual help. It isn’t just about uplifting the members economically, but also morally, and socially.
In a way, Privateum is not only using decentralized technology but also bringing structural decentralization legally and organizationally. This mix of both legal and technical decentralization can be seen as one of the most innovative approaches to undertake the problems of bringing privacy to the masses while being compliant with the laws of multiple countries.
Privateum is now accepting membership to its cooperative for those who want to benefit from a private, secure, global, sustainable fintech crypto platform built to protect honest individuals, high integrity organizations, and purpose-driven companies dedicated to one enduring idea: improving and adopting the world-changing power crypto by bringing enterprise solutions to the blockchain ecosystem.