Key Insights
- The Zcash wallet team begins new wallet work shortly after leaving the Electric Coin Company.
- The new wallet is based on the Zashi code and can be easily migrated by the user within a few weeks.
- Rules of governance and nonprofits drove the developer out.
The creators of the privacy-centric cryptocurrency Zcash have already announced the development of a new Zcash wallet, just a day after officially departing the Electric Coin Company (ECC).
The announcement follows the previous public governance conflict, which led to the entire ECC development team stepping down and being replaced by a new, independent company with Zcash development as its sole mission.
According to statements released on Thursday, the new Zcash wallet will be based on the same code that powers the existing Zashi wallet and is expected to launch within weeks, marking a rapid continuation of development despite organisational upheaval.
Former ECC Chief Executive Officer Josh Swihart said the departing team is moving forward without introducing new digital assets or altering Zcash’s core mission.
Instead, the effort is aimed at expanding tooling and infrastructure around the network, starting with a replacement Zcash wallet that allows current users to migrate with minimal friction.
Zcash Wallet Plans and Timeline
Swihart stated that the team that originally launched Zcash and built the Zashi mobile wallet is now developing a new Zcash wallet under the code name “cashZ.”
The wallet will use the Zashi codebase and is expected to be released in a “few weeks,” according to Swihart’s public remarks.
https://twitter.com/jswihart/status/2009323099154747639
Swihart added that users of the existing Zashi wallet will be able to migrate seamlessly to the new Zcash wallet, though no additional technical specifications or feature details were disclosed.
He also clarified that the group does not intend to launch a new coin or token. “We aren’t launching any new coins; we’re just scaling Zcash,” Swihart said, framing the creation of a new company as an organisational necessity rather than a shift in product direction.
Governance Dispute Behind the Exit
The wallet announcement followed a major split between ECC staff and Bootstrap, the nonprofit entity that oversees ECC’s work.
According to Swihart, tensions had built over several weeks as governance and employment terms changed.
He described the situation as a “constructive discharge,” stating that revised conditions made it impossible for the development team to continue operating under ECC’s structure.
On January 7, the entire ECC development team resigned, with plans to form a new Zcash-focused company.
Swihart said the resignations were tied to governance constraints rather than disagreements over the underlying technology or the goals of Zcash itself.
Bootstrap’s Response and Legal Constraints
Adding to the report, Bootstrap board member Zaki Manian provided the nonprofit’s account of the dispute.
Bootstrap said the conflict stemmed from its legal and fiduciary responsibilities as a U.S. 501(c)(3) organisation, not from differences over Zcash’s mission or long-term vision.
Bootstrap said it had engaged in weeks of discussions regarding external investment and potential restructuring related to Zashi, the Zcash wallet developed by ECC and launched in early 2024.
According to the board, those talks encountered firm limits imposed by nonprofit law, which governs how charitable assets, intellectual property, and financial transactions must be managed.
The board warned that privatising Zashi could expose Bootstrap to donor lawsuits, regulatory scrutiny, or legal action that would require transactions to be reversed.
In some scenarios, assets could be forced back to ECC, potentially affecting not only the wallet project but also the broader Zcash ecosystem.
Additionally, the board said these legal constraints ultimately contributed to the separation.
Rationale for a New Company Structure
Swihart later expanded on the reasons for forming a new organisation, outlining three primary factors on the team’s website. Additionally, he said Zcash’s cypherpunk roots require an organisation aligned with that principle.
Moreover, he argued that privacy should be treated as a normal feature of digital money, similar to physical cash, and that defending those principles requires operational flexibility and speed.
He opposed nonprofit structures, whereby compliance with rules is considered, and startups, where execution and innovation are prioritised.
Swihart also cited historical issues in crypto projects where nonprofit foundations and for-profit developers are co-located, and referred to such structures as a pattern of conflict within the organisation.
Swihart reported that Zcash has expanded substantially in the two years and currently needs an organisational hierarchy that can scale.
He cited competition with networks like Bitcoin, Ethereum, and Solana as a reason for the necessity of even faster development and greater clarity in operations.
