MakerDAO disagrees with Circle's decision to block Tornado Cash wallet addresses.
Last Monday, August 8, the United States Treasury Department made the decision to prohibit all citizens and institutions in the country from using the Tornado Cash Cryptocurrency Combiner.
Circle, the company behind the USDC stablecoin, decided to comply with the Treasury's dictate and blocked 38 Tornado Cash digital wallet addresses which appear on the blacklist offered by the government entity.
This decision did not please Rune Christensen, Founder of MakerDAO, which has announced through the official Discord channel that it will present an official proposal for MakerDAO's native decentralized stablecoin DAI is fully, or as fully as possible, decoupled from USDC and Circle.
“I think we should seriously consider preparing to decouple from USDC. It’s almost inevitable that it will happen and it’s only realistic to do so with massive amounts of preparation,” the MakerDAO founder said via Discord.
This is because Christensen and much of the MakerDAO community do not agree with Circle's decision to block the 38 Tornado Cash addresses. They consider it to be a measure that goes against the privacy of users and is a corporate compliance with excessive and unfair government censorship.
MakerDAO believes that Circle was not obliged to block the addresses digital wallet and did so out of sheer caution, in order to avoid the attention of the United States government.
The effects of the sanction on Tornado Cash
Circle is not the only company to join the Treasury Department in sanctioning Tornado Cash.
Cryptocurrency exchange dYdX also decided to block several addresses from wallets of users who had interacted with Tornado Cash. In this case, the community has pointed out that this is an excessive measure, since the blocked accounts had received only very small amounts of tokens.
In fact, dYdX had to acknowledge that the measure was affecting innocent people, so it announced that it would review it again.
Alchemy, an infrastructure provider for Ethereum, has blocked access to its nodes for all Tornado Cash users. However, one of the harsh measures has been that of GitHub, which has Deleted the accounts of all Tornado Cash developers and has deleted all material associated with the protocol.
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