This mode (‘createwallet {“disableprivatekeys”: true}’) is intended for a sane pure watch-only mode, ideal for a use-case where one likes to use Bitcoin-Core in conjunction with a hardware-wallet or another solutions for cold-storage.
Since we have support for custom change addresses in fundrawtransaction
, pure watch-only wallets including coin-selection are possible and do make sense for some use cases.
This new mode disables all forms of private key generation and ensure that no mix between hot and cold keys are possible.