How Anonymity Killed Bitcoin Adoption

“Bitcoin’s failure to gain broader consumer adoption is largely due to the crypto community’s ideological commitment to anonymity. The failure to address the legitimate concerns regulators have regarding illicit transactions are unsettling to the consumer. Banks have expressed concern regarding regulatory conflict that users have in using the currency,” said New York software entrepreneur John Underwood, the founder of Identabit, the first identity based alternative to Bitcoin.

"Eager to see digital currencies realize their potential, we have become increasingly frustrated that Satoshi’s extraordinary innovation is being undermined by the Bitcoin community’s loyalty to remaining anonymous,” said Underwood. “While the case for anonymity is proven, it does little to build the case for its importance beyond criminal activities. Diving into Bitcoin funds such as Goldman Sachs China and Bitpay’s dark­web statistics, we find that close to 90% of Bitcoin's Network are those profiting from illegal transactions or expatriation of Chinese Funds.

“Bitcoin's illegal transactions do nothing to help drive consumer adoption. This left us with the belief that the door was wide open for a new digital currency. One which addresses the issues of compliance, institutional support and ease of use,” explained Underwood.

“We are sitting on the greatest financial innovation of our time. If the ideological commitment to anonymity were allowed to continue unchallenged many issues would arise. Digital currencies could be stomped on by regulators, rejected by financial institutions, and ignored by users,” Underwood said. 

“Identabit is intent on revolutionizing financial systems. We are different from those touting anonymity. We see no benefit in alienating the establishment by challenging the importance of regulations intent upon protecting society. What users require is privacy not anonymity,” said Underwood. “Users of digital currencies do not want to be caught up in a world of criminal activity fearful of regulators. Privacy can be assured without relying on anonymity. With Identabit we offer consumers privacy while enabling regulatory compliance. We intended to protect society from terrorism, money laundering, theft and extortion.”

“The drive by Bitcoin’s community to remain anonymous has resulted in potential users asking why bother? After all we can’t get them or use them. Unless we make digital currencies easier to use than existing methods of sending money, crypto currencies will never be broadly adopted,” summarized Underwood.

“Working with our financial partners we see an enormous opportunity. We have the finest minds in the crypto world and they are dedicated to the end user experience, to fill a void with a digital currency designed to work with the establishment. We work with an independent currency unhindered by anonymity, a currency that encourages use and ultimately delivers on the promise of the internet of money,” concluded Underwood.