Bitrabo Editorial
Balaji Srinivasan, former chief technology officer of Coinbase, one of the leading cryptocurrency exchanges, has warned that bankrupt governments may attempt to seize a portion of people’s bitcoin if owning adequate crypto becomes the most crucial debate in the coming years.
Srinivasan has expressed alarm over the risks that large tech firms represent to the cryptocurrency market. He referred to Apple and Google as “systemic risks” to the crypto industry.
Risks to Private Keys
In a tweet on May 19, Srinivasan said that the US government might use iPhones and Android devices made by the tech giants as “weapons” to compromise private keys.
Former CTO emphasized the growing political significance of cryptocurrencies. He argued that holding sufficient bitcoin by financially distressed governments might become a critical political issue by the end of the decade, similar to how Twitter and Facebook played vital parts in catalyzing the Arab Spring in 2010.
He added, “This isn’t cyberterrorism, it’s cyberwar,” referring to the tech companies that give a lawful order to hack their customers, and every tech company that turned on its former customers, including the 140 million Russians who were considered state adversaries at the beginning of 2022.
Forced to Conform
In this dystopian future, the former Coinbase Executive stated that the majority of tech firms would be forced to conform because they have no other choice. In pursuit of funds, the US may compel tech companies, such as Apple and Google, to hunt for private keys on servers, devices, and browsers they control.
This would be a way for the government to allocate funds, providing a source of funding for a financially struggling government. Srinivasan underscored that this scenario is not an act of cyberterrorism but “cyberwar.”
Crypto’s Own Mobile Device
Meanwhile, some people suggested that crypto, in the future, may require its own mobile device, and the Solana phone, launched recently, could be the solution. However, many have questioned why individuals would still keep their private keys on their cellphones because both Google and Apple stores lack end-to-end encryption – a breach of security standards.
End-to-end encryption ensures that data transmitted between users and services remains private and secure, even from the service provider. Although Google and Apple have implemented encryption for messaging apps, they have yet to maintain the same level of security for their app stores.
Backlash
In August 2021, Apple received criticism for its proposed three child safety features – a tool to locate CSAM images stored in iCloud photos. The update is said to have obscured sexually explicit images in the Message app and other child exploitation tools. Demonstrators claimed that this feature could generate a “backdoor” for law enforcement and government institutions to use for surveillance purposes. False positives were also a worry since anyone could mistake and upload CSAM images to another person’s iCloud account, flagging them.
The US and China hold the most significant number of Bitcoins and other digital assets. To give some context, the US government currently holds over $6 billion worth of crypto, a large chunk of which came from confiscation, such as in the Bitfinex hack and the Silk Road Bitcoin raid.