Scaling is a privacy issue as well. If we cannot scale in a sovereign or even semi sovereign fashion, then we are stuck with custodians, which is the worst case scenario for privacy.

In addition, most L2 tools are inherently privacy benefits as well, by merely taking the payment/settlement off chain, the permanent record is default removed, so the dynamic is immediately something that can be turned in the user’s benefit much easier.

A great example with CTV, if you and a family it trusted group is using a timeout tree or other CTV based scaling solution, then it’s not obvious at all that the single UTXO is actually owned by maybe 50 different people, and those wallet transactions aggregated can be mostly obfuscated entirely off chain, so ownership can change without hitting the chain with any user specific data that can be traced through a UTXO history.