Financial privacy is not merely a technical feature but a fundamental prerequisite for democratic financial systems. NEW-EIP's second pillar, Privacy, presents an innovative balance between regulatory compliance and personal data protection through the 'need to know basis' principle and the zk-basis ID system. To resolve the fundamental contradiction between GDPR's 'right to be forgotten' and blockchain's immutability, we propose a new paradigm centered on selective information disclosure mechanisms and encrypted state synchronization.