Cake Wallet founder Vikrant Sharma believes privacy in cryptocurrency is shifting from a niche feature to a practical necessity as more businesses and institutions adopt blockchain technology.
Founded in 2018, Cake Wallet began as a Monero (XMR)-focused wallet built around strong privacy and self-custody. Monero (XMR) is a cryptocurrency designed to obscure sender, receiver and transaction amounts by default, unlike Bitcoin (BTC), where all transactions are publicly visible on the blockchain.
While the wallet has since expanded to support Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and other assets, Sharma maintains privacy remains central to the company’s mission.
"I think it’s funny when people say that, ‘Oh, it’s privacy season.’ I’m like, for us, it’s always been privacy season," Sharma told Sandmark.
A noticeable shift
The push towards privacy is gaining traction in traditional finance. Banks including Société Générale and JPMorgan have expanded projects on the Canton Network, a blockchain platform designed to let institutions share infrastructure while keeping sensitive transaction data private.
A recent report from Fireblocks argued that privacy is becoming increasingly important for businesses using stablecoins and blockchain-based payments. Many firms are uncomfortable conducting large transactions on fully transparent networks where competitors can track activity.
Individual users are also showing greater awareness. Sharma noted that as Bitcoin (BTC) adoption grows, more people are realizing their onchain activity can be traced indefinitely.
Privacy beyond Monero
Cake Wallet’s business performance reflects this broader trend. The wallet’s downloads have grown from roughly 500,000 to nearly 2mn over the past year, while transaction volume has tripled, according to Sharma.
Two years ago, around 90% of activity on the platform involved Monero (XMR) transactions. Today, Sharma estimates that share has fallen to 60–65% as users increasingly adopt other cryptocurrencies through the wallet.
"I think people want to use cryptocurrency. I think people want to have that self-custody and control and not rely on a permissioned system like a bank or Venmo or something," he said. "They want something permissionless, and I think the next step to that is privacy."
This shift is also visible in privacy-focused assets. Zcash (ZEC), for example, was the best-performing major digital asset in 2025 amid renewed interest in financial privacy tools.
Privacy, regulation
Privacy remains one of crypto’s most contested areas. Supporters view it as a fundamental right, while critics argue that privacy coins can complicate anti-money laundering (AML) and know-your-customer (KYC) compliance.
Some exchanges have delisted privacy coins, and regulators have tightened rules. The European Union is set to implement stricter AML requirements in 2027 that will limit privacy coins on regulated platforms. Dubai has already banned their trading in its financial center.
However, not all regulators take a hardline approach. On 28 May, US Securities and Exchange Commission (SEC) Commissioner Hester Peirce defended privacy-enhancing technologies during a speech at Georgetown Law.
"Empowering government to be able to identify, pursue and punish the bad guys is important to the security of the nation and its people, but so too is empowering people to protect information about their lives, including their financial lives," Peirce said.
Sharma echoed this view. "The biggest currency for crime in the world is the US dollar, right? We’re not banning that," he said. "I view privacy as a human right. I think you should be able to spend your money and hold your money the way you want."
