San Jose-based visa and passport services provider Peninsula Visa announced its introduction of Bitcoin as an accepted payment method to its services. The firm aims to speed up the US processing passport applications, renewals and other additional tasks. Passports can be acquired using Bitcoin within a month and it will be backed by Coinbase Commerce.
This step may enable the biggest de-anonymization of Bitcoin users in history. A large amount of sensitive data that is created, stored and processed in the course of ordinary business operations can be used for any purpose, and also may jeopardize personal and financial identification as well as, which creates trust issues. While some techniques could separate sensitive data from shared data, the original information is still conserved, which easily leads to de-anonymization of Bitcoin users.
By matching limited data sets with online accessible data, personal information and identity can be traced and collected. This provokes privacy concerns for anyone that wants to buy a US passport with Bitcoin, as it permanently links an ID to any transaction the wallet has ever and will ever create.