The Bitcoin Improvement Proposal (BIP) 138, merged into the BIP repository on September 21 as a draft, seeks to address the issue of multisignature wallets becoming irrecoverable if their descriptor or a signer's public key is lost. However, the proposal introduces a privacy tradeoff: if a third-party server already holds an eligible extended public key (xpub) and obtains a copy of the encrypted backup file, it could decrypt the file to learn wallet metadata (public keys and script structure), though not the private keys needed for spending. The draft includes limits to prevent on-chain public keys from becoming keys to the off-chain backup, and its merge does not imply immediate network changes or wallet support.