PayPal Cofounder Talks Encryption Backdoor Risks

Encryption.

It’s one of the hottest buzzwords in the payments and tech industries right now, and it’s one that was the subject of a recent interview with one man in payments who isn’t shy on sharing his opinions: PayPal Cofounder Max Levchin.

This issue has been catching widespread attention with Silicon Valley tech giants, particularly in light of the recent terrorist attacks in Paris and San Bernardino but has also caused strain between those tech companies and the U.S. government, as the groups look to balance security with consumer privacy.

The biggest hurdle for Washington leaders right now, according to Levchin? Making sure White House leaders and Congress actually understand the technological side of how encryption works.

“My hope is that, at the very least, people debating it, from the staffers to the congresspeople, understand how it works,” Levchin said in an interview cited in The Wall Street Journal. “I have a sneaking suspicion in a lot of cases they do not.”

What the main debate has been on with this subject is how much power companies should have in encrypting devices to protect their consumers’ data. Where the tension spurs from, of course, is the fact that the government wants the ability to tap into devices for matters of national security.

But finding that middle ground has proved challenging as the tech giants’ goals seem to conflict with what the government wants. While the tech giants argue that stronger encryption tools better protect their consumers, they have also pushed that opening up encryption standards would give cybercriminals the ability to exploit people and would also pave the way for police and the government to act as “Big Brother” and spy on those people.

The battle between Washington officials and Silicon Valley companies dates back to issues with Apple and Google, which have created smartphones that are so highly encrypted that they cannot be accessed — even by the companies themselves.

Tech companies have stressed the need for strong encryption tools. In fact, Apple CEO Tim Cook told WSJ that he didn’t “know a way to protect people without encrypting.”

“You can’t have a backdoor that’s only for the good guys,” he said at a conference in October. The backdoor issue has been at the height of the debate for months. Tech companies have argued that a company’s first responsibility should be to protect its customers’ privacy.

The Information Technology Industry Council released a statement, stating, “Weakening security with the aim of advancing security simply does not make sense.” Members of that council include Apple and Microsoft. Apple, Alphabet, Facebook and other tech companies have kept quiet on the debate recently in light of the sensitivities of the recent terrorist attacks.

But now, Levchin is speaking up. Following sentiments expressed by the other tech companies, Levchin said that utilizing that option could open up the floodgates for dangerous cybercriminals.

“The only thing that will happen if there’s a government-mandated backdoor or cryptographic limitations is that the good guys will have to abide and become vulnerable to the bad guys,” Levchin said. “The bad guys will not have to comply because they don’t care about the rules and they will have strong crypto.”