Financial privacy and regulatory compliance have long been treated as competing priorities. But what if regulators could trace suspicious transactions without creating a system of permanent financial surveillance?
In this episode of The Privacy Podcast, host Ben Schiller welcomes François-Xavier Wicht, known as FX, a PhD researcher at the University of Bern in Switzerland, to explore a new cryptographic approach called ephemeral coin tracing.
The concept tackles one of the biggest challenges facing digital finance: how to give authorities the tools to investigate money laundering, terrorist financing, and tax evasion while protecting the financial privacy of law-abiding individuals.
Their discussion centers on the research paper,
"Track Me If You Can: Ephemeral Coin Tracing," co-authored by Wicht and fellow researchers. The paper introduces a cryptographic mechanism designed to reconcile financial privacy with regulatory oversight by placing limits on how far transaction tracing can extend.
Unlike conventional tracing mechanisms, which can potentially expose entire transaction networks, ephemeral coin tracing introduces encrypted identifiers that gradually lose their traceability as transactions progress. The result is a proposed system designed to limit the reach of surveillance while preserving targeted investigative capabilities.
Ben and FX examine how the technology works, the role of zero-knowledge proofs, the risks associated with centralized oversight, and what this research could mean for central bank digital currencies (CBDCs), stablecoins, and blockchain-based payment systems.
They also discuss the practical challenges of implementing privacy-preserving financial infrastructure and why cryptographic innovation may offer a path toward balancing accountability with individual rights.
Can we build financial systems that are both compliant and genuinely private?
Tune in for a fascinating conversation about the future of digital money, financial surveillance, and the next generation of privacy technology.
🔗 About the 👤 Guest
François-Xavier Wicht (FX)
PhD Researcher | University of Bern, Switzerland
RESEARCH PAPER Track Me If You Can: Ephemeral Coin Tracing
Authors: Ignacio Amores-Sesar, Christian Cachin, Rohit Chatterjee, Luiza Soezima, François-Xavier Wicht, and Michelle Yeo.
Listen to the latest episode of The Privacy Podcast.
About the Show
The Privacy Podcast by Miden explores the intersection of privacy, identity, and emerging technologies. Hosted by Ben Schiller, the show brings together builders, regulators, and thinkers shaping what comes next in a world where data is power.
Executive Producer Michele Musso
Edited by the
Musso Media Team
Music: licensed.
All rights reserved. ©2026 Musso Media
What is Privacy Podcast?
The Privacy Podcast by Miden explores the future of privacy, identity, and trust in a digital world being reshaped by blockchain and AI.
Hosted by Ben Schiller, The Privacy Podcast dives into one of the most critical questions facing technology today: How do we build a more private, secure, and trustworthy internet?
A former journalist with over a decade of experience covering crypto and emerging technologies, including six years at CoinDesk, Schiller brings a sharp editorial lens to conversations at the intersection of privacy, blockchain, and digital rights.
At its core, this podcast is driven by a simple idea: privacy is not optional. It is foundational to the next phase of the internet.
As blockchain technology moves from experimentation to real-world adoption, privacy becomes essential for onboarding institutions, enabling enterprise use cases, and unlocking the full potential of decentralized systems. At the same time, it addresses a deeper, long-standing issue. The modern internet was built without effective privacy infrastructure, giving rise to what is often described as a surveillance-based economy, where personal data is exchanged for access to services.
This show explores how that model is changing.
Produced by Musso Media, The Privacy Podcast features conversations with leading builders, researchers, policymakers, and thinkers shaping what comes next.