The widespread adoption of European Digital Identity wallets (EID 2.0) and similar global initiatives could lead to regulators monitoring, restricting, or blocking crypto transactions based on user identity, impacting privacy and censorship resistance.
"For instance, the EU is rolling out a European digital identity wallet under its EID 2.0 framework. Simply put, this could become a mandatory bridge between real world identities and blockchain interaction. If other global players follow suit, regulators or intermediaries could start monitoring, restricting, or even blocking transactions based on identity, that would hit the privacy and censorship resistance hard and push us closer to a dystopian world where every move you make is tracked and controlled."
