diff --git a/src/wallet/rpcwallet.cpp b/src/wallet/rpcwallet.cpp
index 1036923dbe4..3235accb125 100644
--- a/src/wallet/rpcwallet.cpp
+++ b/src/wallet/rpcwallet.cpp
@@ -294,7 +294,9 @@ static RPCHelpMan getnewaddress()
         label = LabelFromValue(request.params[0]);
 
     OutputType output_type = pwallet->m_default_address_type;
-    bool force_blind = false;
+    // default blinding to the blindedaddresses setting
+    bool add_blinding_key = gArgs.GetBoolArg("-blindedaddresses", g_con_elementsmode);
+
     if (!request.params[1].isNull()) {
         if (!ParseOutputType(request.params[1].get_str(), output_type)) {
             throw JSONRPCError(RPC_INVALID_ADDRESS_OR_KEY, strprintf("Unknown address type '%s'", request.params[1].get_str()));
@@ -302,15 +304,17 @@ static RPCHelpMan getnewaddress()
         if (output_type == OutputType::BECH32M && pwallet->GetLegacyScriptPubKeyMan()) {
             throw JSONRPCError(RPC_INVALID_PARAMETER, "Legacy wallets cannot provide bech32m addresses");
         }
-        // Special case for "blech32" when `-blindedaddresses=0` in the config.
         if (request.params[1].get_str() == "blech32") {
-            force_blind = true;
+            // always blind for "blech32" even if `-blindedaddresses=0` in the config.
+            add_blinding_key = true;
+        } else if (request.params[1].get_str() == "bech32") {
+            // never blind for "bech32"
+            add_blinding_key = false;
         }
     }
 
     CTxDestination dest;
     std::string error;
-    bool add_blinding_key = force_blind || gArgs.GetBoolArg("-blindedaddresses", g_con_elementsmode);
     if (!pwallet->GetNewDestination(output_type, label, dest, error, add_blinding_key)) {
         throw JSONRPCError(RPC_WALLET_KEYPOOL_RAN_OUT, error);
     }
diff --git a/test/functional/feature_confidential_transactions.py b/test/functional/feature_confidential_transactions.py
index cceed177281..db3c7080f6d 100755
--- a/test/functional/feature_confidential_transactions.py
+++ b/test/functional/feature_confidential_transactions.py
@@ -164,13 +164,13 @@ def run_test(self):
         self.test_wallet_recovery()
 
         print("Test blech32 python roundtrip")
-        # blech/bech are aliased, both are blech32
-        for addrtype in ["bech32", "blech32"]:
-            addr_to_rt = self.nodes[0].getnewaddress("", addrtype)
-            hrp = addr_to_rt[:2]
-            assert_equal(hrp, "el")
-            (witver, witprog) = decode(hrp, addr_to_rt)
-            assert_equal(encode(hrp, witver, witprog), addr_to_rt)
+        # test only blech32, since getnewaddress for bech32 was changed to return an unblinded address
+        addr_to_rt = self.nodes[0].getnewaddress("", "blech32")
+        hrp = addr_to_rt[:2]
+        assert_equal(hrp, "el")
+
+        (witver, witprog) = decode(hrp, addr_to_rt)
+        assert_equal(encode(hrp, witver, witprog), addr_to_rt)
 
         # Test that "blech32" gives a blinded segwit address.
         blech32_addr = self.nodes[0].getnewaddress("", "blech32")
diff --git a/test/functional/feature_sighash_rangeproof.py b/test/functional/feature_sighash_rangeproof.py
index 2950bbfc472..c173607671d 100755
--- a/test/functional/feature_sighash_rangeproof.py
+++ b/test/functional/feature_sighash_rangeproof.py
@@ -130,7 +130,7 @@ def prepare_tx_signed_with_sighash(self, address_type, sighash_rangeproof_aware,
                 struct.pack("<B", len(signature)) + signature
                 + struct.pack("<B", len(pubkey.get_bytes())) + pubkey.get_bytes()
             )
-        elif address_type == "bech32" or address_type == "p2sh-segwit":
+        elif address_type == "blech32" or address_type == "p2sh-segwit":
             assert signed_tx.wit.vtxinwit[0].scriptWitness.stack[1] == pubkey.get_bytes()
             pubkeyhash = hash160(pubkey.get_bytes())
             script = get_p2pkh_script(pubkeyhash)
@@ -217,7 +217,7 @@ def assert_tx_valid(self, tx, assert_valid=True):
 
     def run_test(self):
         util.node_fastmerkle = self.nodes[0]
-        ADDRESS_TYPES = ["legacy", "bech32", "p2sh-segwit"]
+        ADDRESS_TYPES = ["legacy", "blech32", "p2sh-segwit"]
 
         # Different test scenarios.
         # - before activation, using the flag is non-standard
@@ -280,4 +280,3 @@ def run_test(self):
 
 if __name__ == '__main__':
     SighashRangeproofTest().main()
-
diff --git a/test/functional/rpc_signrawtransaction.py b/test/functional/rpc_signrawtransaction.py
index 606b999bc78..748f92f9667 100755
--- a/test/functional/rpc_signrawtransaction.py
+++ b/test/functional/rpc_signrawtransaction.py
@@ -357,7 +357,7 @@ def witness_blind_pubkey_test(self):
         4) The signature of signrawtransactionwithwallet by inputs and
            the signature of signrawtransactionwithwallet by utxos are equal.
         5) The signed transaction can broadcast."""
-        utxo_address = self.nodes[2].getnewaddress('', 'bech32')
+        utxo_address = self.nodes[2].getnewaddress('', 'blech32')
         utxo_address_info = self.nodes[2].getaddressinfo(utxo_address)
         uc_addr = utxo_address_info['unconfidential']
         utxo_address_privkey = self.nodes[2].dumpprivkey(uc_addr)