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February 23, 2025

Can Web3 Thrive Amid America’s Data Privacy Gap?

I keep wondering: how does web3 succeed in the U.S.?

At its core, web3 envisions a decentralized system where individuals own their data, recognize its value, and engage with companies that respect that principle. Yet, in America, this reality seems almost laughably out of reach.

For those needing a refresher on our collective indifference to data privacy, the South Park episode "HUMANCENTiPAD" perfectly captures America’s blasé attitude toward data gathering by centralized corporations. Most people don't worry about companies that hold and sell their data—even as breaches and hacks put their privacy at risk. We’re talking cookies, ad tech, and the countless ways companies intentionally gather and sell customer data.

Yet, who do Americans often fear when it comes to data collection? The U.S. Government.

The "boogeyman" of the U.S. retail CBDC (Central Bank Digital Currency) has led many Americans to fear government control over their data, despite strict legal safeguards around data access. I’m not arguing in favor of retail CBDCs. I’m saying that if the goal is to protect privacy and drive web3 adoption, focusing fear on the government is misplaced. To succeed, web3 must target the real threat to privacy: private corporations who commoditize our data every day.

If individuals are to recognize the value of their data, they need to understand who’s profiting from it and stop handing it over for free. And if fear motivates people, then it should focus on the real data privacy threat. Political conservatives understood this long ago, leveraging fear effectively to mobilize people on issues. Ironically, many U.S. venture capitalists backing web3 companies support a political ideology that panders to big tech, avoiding regulation and shifting focus onto the "boogeyman" of government instead of tackling the actual threat from centralized tech giants.

How does web3 flourish in a country where data privacy concerns are misdirected? How do we expect people to care when we’ve exhausted fear tactics on a straw man? I’d genuinely like to hear thoughts on how web3 can gain traction here if Americans remain indifferent to corporate data collection and we continue to lack private sector data privacy regulations.

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