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Coinbase is working on adding private transaction capabilities to its Layer 2 blockchain, Base, according to comments from CEO Brian Armstrong. The move is part of a broader vision to give users more control over their financial data while maintaining regulatory compliance. Armstrong described privacy as a key feature in the next phase of blockchain infrastructure, stating that financial freedom and privacy should go hand in hand.
The planned feature will allow users to make transactions that don’t publicly reveal all details on-chain, though the system will still include mechanisms for compliance, such as auditability and optional disclosures. Coinbase is looking to strike a balance between user privacy and the transparency required by regulators. Armstrong made it clear that full anonymity isn’t the goal, but rather practical privacy that protects individuals from unnecessary exposure.
Base, which launched earlier this year, has already gained traction as a fast, low-cost Ethereum Layer 2 network with strong developer support. The addition of privacy-focused tools could make it more appealing to both retail users and developers building finance-related applications. Armstrong suggested that these upgrades are essential to making crypto useful for everyday payments and more aligned with traditional financial norms.
This development also reflects a growing trend across the blockchain space, where users are demanding more privacy options without sacrificing legal clarity. Coinbase’s decision to invest in this area signals its commitment to long-term infrastructure and positions Base as a potential leader among Layer 2 networks. More details about the privacy features are expected as the project moves forward.
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