The conspiracy theorist in me tells me that their plan is:

1: force open source out of the market.

2: force all closed-source companies to install backdoors.

3: surveil everyone, all the time.

4, maybe: steal bit- and shitcoins at will (or at least block their use), from anyone they want.

Can't decide if they are evil masterminds with such a plan, or "highly regarded" and not knowing the first thing about the potential consequences of their actions. It's either or. Nothing in between.

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they are not that smart to do something so dumb

Probably not. It was a while ago, but no more than ten years, that a Pirate Party Member of European Parliament (or someone in close proximity, I don't remember) blogged about many of these people deciding the EU:s digital future not using e-mail themselves, but getting them printed out for them...