Grayscale says AI-era financial surveillance could lift Zcash as privacy demand returns
Grayscale Research argues that financial privacy is moving back into focus as stablecoins and broader blockchain use spread and artificial intelligence creates new ways to monitor financial activity. In a report written by Michael Zhao and translated by Foresight News, the firm says Zcash stands out because it combines a Bitcoin-like monetary design with optional shielded transactions powered by zero-knowledge proofs. The report frames privacy as a core monetary function rather than a niche add-on. It reviews earlier periods when digitized records, the Bank Secrecy Act, internet banking, and the Patriot Act pushed privacy higher on the public agenda, then says the market may be approaching a third wave of attention. In Grayscale’s view, Zcash is one of the few networks designed at the base-layer level to protect sender, receiver, and amount data while still allowing transaction validity to be verified. The network also supports selective disclosure through viewing keys. Grayscale says ZEC accounts for roughly 0.4% of total crypto market capitalization and about 0.6% of the “currency” segment it tracks, despite what it describes as meaningful on-chain usage. As of July 20, shielded transactions made up about 90% of all Zcash transactions, while roughly 4.2 million ZEC, or 25% of circulating supply, sat in the shielded pool. The firm also highlights regulatory, cryptographic, quantum, and execution risks, including the limits of compliance acceptance for shielded transfers and the complexity of future upgrades such as Tachyon and Crosslink.








