David Schwartz, chief technical officer of Ripple, responded to a query on Twitter about how he likes to keep cryptocurrency both offline and online and shared another statement regarding the recent, contentious upgrade to the Ledger wallet.
Ledger’s CEO, according to Schwartz, is attempting to convince users to adopt the company’s new service by asserting that it would not disclose any personal customer information with the IRS. Here, the CTO of Ripple vehemently disagrees.
Paper wallets, hardware wallet and encrypted hot wallets
Schwartz was questioned on Twitter about his preferred techniques for offline crypto storage. In response, the Ripple CTO stated that he is unable to discuss his “personal practises for obvious reasons.” He did, however, express his opinion on other wallets. Paper crypto wallets, hardware wallets, and encrypted software wallets, according to Schwartz, each have advantages and disadvantages.
He claims, however, that he often suggests SecuX wallets to those who simply wish to passively hodl their cryptocurrency without trading, staking, or utilising it in other ways, including making payments.
Schwartz believes Ledger can leak users’ data to IRS
David Schwartz reposted a video clip from a recent interview with Ledger CEO Pascal Gauthier in the original tweet. The popular crypto hardware wallet’s CEO made a statement on a recent upgrade made by the business; going forward, customers will have the option to “secure” their seed phrase by having it encrypted and sent in pieces to three distinct devices.
The crypto community was outraged since this suggests that digital assets in so-called cold wallets would suddenly be simple targets for hackers, and Ledger would not be liable if something went wrong and these devices, which are used to send the seed phrase fragments, were compromised.
By explaining that this is not required and that customers can continue using Ledger wallet without turning on this update, Pascal Gauthier made an effort to calm the audience. But David Schwartz was not very interested in this.
The Internal Revenue Service (IRS), according to Gauthier, won’t issue a subpoena against Ledger, and even if it does, the IRS won’t be interested in the personal information of Ledger clients.
In response, Schwartz vehemently disagreed, labelling Gauthier’s assertion that the IRS had no purpose for consumers’ personal data as “comically ridiculous.”
He emphasised that if its customers accept the new service, Ledger will start making much more money, and he described the wallet manufacturer as being “so greedy to make money on this service that they completely forgot the entire value proposition of their product after all the effort they spent explaining it to people.”
