Salam, what exactly is a privacy focoused bitcoin wallet. If the blickchain and every tx is public how would u stay anonynous. Sorry Im just a little confused.
Discussion
It's a good question! So every transaction on the blockchain is public, but the transactions themselves don't say anything about the person using those addresses. But the issue comes when the exchanges make you provide identification through "know your customer" (kyc) rules, then the address that you're using to get the bitcoin out of the exchange is now "kyc'ed" since it's associated with your identification.
So to get around that, it's good to buy Bitcoin from kyc free exchanges too.
But this hypothetical wallet would enhance privacy by having a "mixer" which bundles up a bunch of transactions and "mixes" the coins around so that they can't be associated with an ID. See Samurai as an example. I suggested the name "Mamluk" as a reference and joke about that.
Ooh thats what u meant, yeah mixer like coinjoin or wasabi. Ive heard how exchanges have not let people despoist "mixed" btc on their exhcange brother, wouldnt that be bad for privacy.