Balaji Srinivasan, the former chief technology officer (CTO) of the largest US cryptocurrency exchange, Coinbase, has expressed concern about the technology giants’ potential threats to the cryptocurrency industry.
Srinivasan expressed concern about Apple and Google, claiming that the US government could use these companies to compromise the security of users’ private keys.
This means that with the help of the tech giants, the government could take control of users’ cryptocurrencies if they are on certain devices such as Android, iPhone, Safari, Mac OS and Chrome, which is common these days.
Private keys are the foundation of cryptocurrency security and control. It is crucial to store them securely, preferably in a digital wallet or specific hardware device, and never share them with third parties to prevent unauthorized access to funds.
systemic risks
In agreement with Srinivasan, Apple and Google pose systemic risks to cryptocurrencies, as if government-weaponed they can create backdoors on iPhone and Android devices to access private keys.
The former CTO also highlighted the growing importance of cryptocurrencies in global politics. Just as Twitter and Facebook played a critical role in the 2010 Arab Spring, Srinivasan argued that by the end of the decade, the ownership of significant amounts of Bitcoin by financially distressed governments could become a major political issue.
He added: “In 2023, even after El Salvador has embraced Bitcoin, people still find it implausible to say, ‘At the end of this decade, perhaps the most important political issue in the world is whether bankrupt governments have enough Bitcoin to fund their operations. ‘ ”
How can Apple and Google help governments seize cryptocurrencies?
Srinivasan speculated on possible actions desperate governments might take. Instead of relying on traditional attacks like the 51% mining attack, he suggested that the government could try to force technology companies like Apple and Google to grant access to private keys stored on their servers, devices and browsers.
In this way, the government could appropriate the resources acquired by the people and serve as a form of financial security for a resourceless administration.
However, Srinivasan stressed that this scenario is not cyber terrorism, but cyber warfare. He stated that this is not a random hacker stealing information, but rather corporate CEOs issuing legal orders to hack their own customers.
The former CTO also highlighted the potential size of this type of attack, stating that billions of iPhones, Android devices, Mac laptops, Chrome browsers, Google Docs and Gmail accounts would be involved. He said China could follow a similar strategy using domestic smartphone makers.
Srinivasan recognized that defenses against these attacks are complex. While Apple CEO Tim Cook has previously resisted government push for encryption, Srinivasan said the challenge becomes greater if the operating system is unreliable.
He mentioned Linux as a possible solution, but also pointed out that its large-scale adoption could be impractical in the short term.
Despite concerns about security threats in the cryptocurrency space, Srinivasan remains optimistic about the sector.
He previously predicted that Bitcoin could reach $1 million in 90 days, driven by the prospect of hyperinflation in the US economy.
It is important to note that Srinivasan’s concerns and opinions are his own and do not represent a consensus of the cryptocurrency industry.
However, his statements highlight the ongoing need to protect the privacy and security of cryptocurrency users in an increasingly connected environment controlled by tech giants.
Source: Live Coins

Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.