Bitcoin Advocates Including Jack Dorsey Urge Signal to Consider Cashu-Based Payments Amid Privacy Concerns

• Campaign overview: “Bitcoin for Signal” seeks to embed Cashu’s Chaumian Ecash for private Bitcoin payments inside Signal.

• Supporters include Jack Dorsey and Bitcoin developer Peter Todd; critics cite Bitcoin’s transparency and privacy limits.

• Signal has ~70 million monthly active users; the integration would intersect with EU encryption and messaging regulation debates.

Bitcoin for Signal: Analysis of Cashu’s Chaumian Ecash integration into Signal, expert reactions, and regulatory implications. Read COINOTAG’s reporting.

How does Bitcoin for Signal work?

Bitcoin for Signal proposes embedding Cashu’s Chaumian Ecash protocol to enable private, redeemable Bitcoin tokens within Signal so users can send value peer‑to‑peer without on‑chain linkage. The approach aims to combine Bitcoin liquidity with off‑chain privacy primitives to protect sender and receiver metadata.

Can Signal maintain privacy if it adds Bitcoin payments?

Cashu’s Chaumian Ecash is designed to break on‑chain linkability by issuing blinded, redeemable tokens that can be spent without directly associating transactions to users’ Bitcoin addresses. Proponents argue this preserves message confidentiality, while critics note Bitcoin’s base layer remains transparent and Cashu-like systems have limited production history at scale. Signal’s prior integration of MobileCoin in April 2021 drew scrutiny over centralization and validation, underscoring the technical and governance choices platforms face. Signal’s ~70 million monthly active users would make any privacy tradeoffs consequential.

Background and expert reactions

Prominent backers of the campaign have publicly voiced support. Jack Dorsey posted on X encouraging Bitcoin support in Signal, and Bitcoin developer Peter Todd said, “Signal App needs to accept reality and just add Bitcoin support,” criticizing MobileCoin’s model. The Bitcoin for Signal movement argues that integrating Cashu can enable everyday value transfers consistent with Bitcoin’s utility beyond a store of value.

Privacy criticisms and alternative perspectives

Opponents stress that Bitcoin’s transparent blockchain is not inherently privacy‑preserving. Aztec Network engineer José Pedro Sousa questioned using a fully public blockchain for a privacy chat, and privacy advocates such as Techlore have warned integration could undermine user confidentiality. Alternatives cited in public discussion include privacy‑focused coins like Monero (XMR) and Zcash (ZEC), though each brings distinct trade‑offs in auditability, regulatory scrutiny, and ecosystem support. Cashu proponents counter that Chaumian Ecash can layer meaningful privacy while leveraging Bitcoin liquidity, but broad production deployment remains unproven.

Regulatory context

This debate unfolds amid European Union proposals around monitoring encrypted messages, commonly referenced as “Chat Control,” which would require scanning for illegal content and could conflict with end‑to‑end encryption. Germany and other states have raised constitutional and civil‑liberties objections, delaying legislative progress. Any payment integration in messaging apps will face both privacy scrutiny and potential anti‑money‑laundering regulatory review from EU and national authorities.

Frequently Asked Questions

Will adding Bitcoin make Signal less private long term?

Not necessarily if privacy layers like Cashu’s Chaumian Ecash are implemented correctly, but risks remain because Bitcoin’s ledger is public and privacy tools require careful design and peer‑reviewed deployment. Operational mistakes or centralization could expose metadata or transaction links.

How would Cashu’s Chaumian Ecash work inside Signal?

Chaumian Ecash issues blinded tokens redeemable for Bitcoin off‑chain; tokens can be transferred without publishing on‑chain transactions. Inside Signal, this could allow in‑chat payments where redemption occurs privately, reducing direct on‑chain footprint while relying on custodial or minting infrastructure.

Key Takeaways

• Integration proposal: Bitcoin for Signal would use Cashu’s Chaumian Ecash to enable private, peer‑to‑peer Bitcoin payments within Signal.
• Support vs. concern: High‑profile supporters back usability and broader Bitcoin utility; privacy experts highlight Bitcoin’s transparency and deployment risks.
• Regulatory impact: EU encryption and messaging proposals could shape feasibility and compliance requirements for in‑app payments.

Conclusion

COINOTAG reporting: The Bitcoin for Signal campaign foregrounds a real technical pathway—Cashu’s Chaumian Ecash—to add private Bitcoin payments to Signal, but the plan raises substantive privacy, governance, and regulatory questions. Stakeholders from developers to regulators will determine whether Signal can safely marry encrypted messaging with on‑platform Bitcoin transfers; readers should follow official statements and audits for implementation clarity.

Author: COINOTAG | Published: 2025-10-17 | Updated: 2025-10-17

Sources (plain text): Jack Dorsey (X posts), Peter Todd statements, Cashu project materials, MobileCoin integration history, Aztec Network engineer José Pedro Sousa, Techlore commentary, EU “Chat Control” proposals.

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