diff --git a/modules/bitcoind.nix b/modules/bitcoind.nix
index 433fc70..e998d07 100644
--- a/modules/bitcoind.nix
+++ b/modules/bitcoind.nix
@@ -5,6 +5,7 @@ with lib;
 let
   cfg = config.services.bitcoind;
   inherit (config) nix-bitcoin-services;
+  secretsDir = config.nix-bitcoin.secretsDir;
 
   configFile = pkgs.writeText "bitcoin.conf" ''
     # We're already logging via journald
@@ -33,8 +34,8 @@ let
     }
     ${lib.concatMapStrings (rpcbind: "rpcbind=${rpcbind}\n") cfg.rpcbind}
     ${lib.concatMapStrings (rpcallowip: "rpcallowip=${rpcallowip}\n") cfg.rpcallowip}
-    ${optionalString (cfg.rpcuser != null) "rpcuser=${cfg.rpcuser}"}
-    ${optionalString (cfg.rpcpassword != null) "rpcpassword=${cfg.rpcpassword}"}
+    # Credentials for bitcoin-cli
+    rpcuser=${cfg.rpc.users.privileged.name}
 
     # Wallet options
     ${optionalString (cfg.addresstype != null) "addresstype=${cfg.addresstype}"}
@@ -110,7 +111,7 @@ in {
                 '';
               };
               passwordHMAC = mkOption {
-                type = with types; uniq (strMatching "[0-9a-f]+\\$[0-9a-f]{64}");
+                type = types.str;
                 example = "f7efda5c189b999524f151318c0c86$d5b51b3beffbc02b724e5d095828e0bc8b2456e9ac8757ae3211a5d9b16a22ae";
                 description = ''
                   Password HMAC-SHA-256 for JSON-RPC connections. Must be a string of the
@@ -141,16 +142,6 @@ in {
           Allow JSON-RPC connections from specified source.
         '';
       };
-      rpcuser = mkOption {
-          type = types.nullOr types.str;
-          default = "bitcoinrpc";
-          description = "Username for JSON-RPC connections";
-      };
-      rpcpassword = mkOption {
-          type = types.nullOr types.str;
-          default = null;
-          description = "Password for JSON-RPC connections";
-      };
       testnet = mkOption {
         type = types.bool;
         default = false;
@@ -297,7 +288,10 @@ in {
       preStart = ''
         ${optionalString cfg.dataDirReadableByGroup  "chmod -R g+rX '${cfg.dataDir}/blocks'"}
 
-        cfg=$(cat ${configFile}; printf "rpcpassword="; cat "${config.nix-bitcoin.secretsDir}/bitcoin-rpcpassword")
+        cfgpre=$(cat ${configFile}; printf "rpcpassword="; cat "${secretsDir}/bitcoin-rpcpassword-privileged")
+        cfg=$(echo "$cfgpre" | \
+        sed "s/bitcoin-HMAC-privileged/$(cat ${secretsDir}/bitcoin-HMAC-privileged)/g" | \
+        sed "s/bitcoin-HMAC-public/$(cat ${secretsDir}/bitcoin-HMAC-public)/g")
         confFile='${cfg.dataDir}/bitcoin.conf'
         if [[ ! -e $confFile || $cfg != $(cat $confFile) ]]; then
           install -o '${cfg.user}' -g '${cfg.group}' -m 640  <(echo "$cfg") $confFile
@@ -355,9 +349,13 @@ in {
     users.groups.${cfg.group} = {};
     users.groups.bitcoinrpc = {};
 
-    nix-bitcoin.secrets.bitcoin-rpcpassword = {
+    nix-bitcoin.secrets.bitcoin-rpcpassword-privileged.user = "bitcoin";
+    nix-bitcoin.secrets.bitcoin-rpcpassword-public = {
       user = "bitcoin";
       group = "bitcoinrpc";
     };
+
+    nix-bitcoin.secrets.bitcoin-HMAC-privileged.user = "bitcoin";
+    nix-bitcoin.secrets.bitcoin-HMAC-public.user = "bitcoin";
   };
 }
diff --git a/modules/clightning.nix b/modules/clightning.nix
index 16b94b3..c7438b4 100644
--- a/modules/clightning.nix
+++ b/modules/clightning.nix
@@ -13,7 +13,7 @@ let
     always-use-proxy=${if cfg.always-use-proxy then "true" else "false"}
     ${optionalString (cfg.bind-addr != null) "bind-addr=${cfg.bind-addr}"}
     ${optionalString (cfg.bitcoin-rpcconnect != null) "bitcoin-rpcconnect=${cfg.bitcoin-rpcconnect}"}
-    bitcoin-rpcuser=${config.services.bitcoind.rpcuser}
+    bitcoin-rpcuser=${config.services.bitcoind.rpc.users.public.name}
     rpc-file-mode=0660
   '';
 in {
@@ -112,7 +112,7 @@ in {
         # The RPC socket has to be removed otherwise we might have stale sockets
         rm -f ${cfg.dataDir}/bitcoin/lightning-rpc
         chmod 600 ${cfg.dataDir}/config
-        echo "bitcoin-rpcpassword=$(cat ${config.nix-bitcoin.secretsDir}/bitcoin-rpcpassword)" >> '${cfg.dataDir}/config'
+        echo "bitcoin-rpcpassword=$(cat ${config.nix-bitcoin.secretsDir}/bitcoin-rpcpassword-public)" >> '${cfg.dataDir}/config'
         ${optionalString cfg.announce-tor "echo announce-addr=$(cat /var/lib/onion-chef/clightning/clightning) >> '${cfg.dataDir}/config'"}
         '';
       serviceConfig = nix-bitcoin-services.defaultHardening // {
diff --git a/modules/electrs.nix b/modules/electrs.nix
index da2de1b..0d67230 100644
--- a/modules/electrs.nix
+++ b/modules/electrs.nix
@@ -74,7 +74,7 @@ in {
       requires = [ "bitcoind.service" ];
       after = [ "bitcoind.service" ];
       preStart = ''
-        echo "cookie = \"${config.services.bitcoind.rpcuser}:$(cat ${secretsDir}/bitcoin-rpcpassword)\"" \
+        echo "cookie = \"${config.services.bitcoind.rpc.users.public.name}:$(cat ${secretsDir}/bitcoin-rpcpassword-public)\"" \
           > electrs.toml
         '';
       serviceConfig = nix-bitcoin-services.defaultHardening // {
diff --git a/modules/liquid.nix b/modules/liquid.nix
index ea15e31..a655b0a 100644
--- a/modules/liquid.nix
+++ b/modules/liquid.nix
@@ -246,7 +246,7 @@ in {
         chmod 640  '${cfg.dataDir}/elements.conf'
         chown -R '${cfg.user}:${cfg.group}' '${cfg.dataDir}'
         echo "rpcpassword=$(cat ${secretsDir}/liquid-rpcpassword)" >> '${cfg.dataDir}/elements.conf'
-        echo "mainchainrpcpassword=$(cat ${secretsDir}/bitcoin-rpcpassword)" >> '${cfg.dataDir}/elements.conf'
+        echo "mainchainrpcpassword=$(cat ${secretsDir}/bitcoin-rpcpassword-public)" >> '${cfg.dataDir}/elements.conf'
       '';
       serviceConfig = nix-bitcoin-services.defaultHardening // {
         Type = "simple";
diff --git a/modules/lnd.nix b/modules/lnd.nix
index 8e5ccc3..6a53dec 100644
--- a/modules/lnd.nix
+++ b/modules/lnd.nix
@@ -25,7 +25,7 @@ let
     ${optionalString (cfg.tor-socks != null) "tor.socks=${cfg.tor-socks}"}
 
     bitcoind.rpchost=${cfg.bitcoind-host}
-    bitcoind.rpcuser=${config.services.bitcoind.rpcuser}
+    bitcoind.rpcuser=${config.services.bitcoind.rpc.users.public.name}
     bitcoind.zmqpubrawblock=${config.services.bitcoind.zmqpubrawblock}
     bitcoind.zmqpubrawtx=${config.services.bitcoind.zmqpubrawtx}
 
@@ -145,7 +145,7 @@ in {
       after = [ "bitcoind.service" ] ++ onion-chef-service;
       preStart = ''
         install -m600 ${configFile} '${cfg.dataDir}/lnd.conf'
-        echo "bitcoind.rpcpass=$(cat ${secretsDir}/bitcoin-rpcpassword)" >> '${cfg.dataDir}/lnd.conf'
+        echo "bitcoind.rpcpass=$(cat ${secretsDir}/bitcoin-rpcpassword-public)" >> '${cfg.dataDir}/lnd.conf'
         ${optionalString cfg.announce-tor "echo externalip=$(cat /var/lib/onion-chef/lnd/lnd) >> '${cfg.dataDir}/lnd.conf'"}
       '';
       serviceConfig = nix-bitcoin-services.defaultHardening // {
diff --git a/modules/presets/secure-node.nix b/modules/presets/secure-node.nix
index 2789f69..faa91f3 100644
--- a/modules/presets/secure-node.nix
+++ b/modules/presets/secure-node.nix
@@ -73,6 +73,16 @@ in {
       discover = false;
       addresstype = "bech32";
       dbCache = 1000;
+      rpc.users.privileged = {
+        name = "bitcoinrpc";
+        # Placeholder to be sed'd out by bitcoind preStart
+        passwordHMAC = "bitcoin-HMAC-privileged";
+      };
+      rpc.users.public = {
+        name = "publicrpc";
+        # Placeholder to be sed'd out by bitcoind preStart
+        passwordHMAC = "bitcoin-HMAC-public";
+      };
     };
     services.tor.hiddenServices.bitcoind = mkHiddenService { port = cfg.bitcoind.port; toHost = cfg.bitcoind.bind; };
 
@@ -96,7 +106,7 @@ in {
       rpcuser = "liquidrpc";
       prune = 1000;
       extraConfig = ''
-        mainchainrpcuser=${cfg.bitcoind.rpcuser}
+        mainchainrpcuser=${config.services.bitcoind.rpc.users.public.name}
         mainchainrpcport=8332
       '';
       validatepegin = true;
diff --git a/pkgs/generate-secrets/default.nix b/pkgs/generate-secrets/default.nix
index 8222057..10c20f2 100644
--- a/pkgs/generate-secrets/default.nix
+++ b/pkgs/generate-secrets/default.nix
@@ -1,6 +1,9 @@
 { pkgs }: with pkgs;
 
+let
+  rpcauth = pkgs.writeScriptBin "rpcauth" (builtins.readFile ./rpcauth/rpcauth.py);
+in
 writeScript "generate-secrets" ''
-  export PATH=${lib.makeBinPath [ coreutils apg openssl ]}
+  export PATH=${lib.makeBinPath [ coreutils apg openssl gnugrep rpcauth python35 ]}
   . ${./generate-secrets.sh} ${./openssl.cnf}
 ''
diff --git a/pkgs/generate-secrets/generate-secrets.sh b/pkgs/generate-secrets/generate-secrets.sh
index 6bb6e9d..2d70741 100755
--- a/pkgs/generate-secrets/generate-secrets.sh
+++ b/pkgs/generate-secrets/generate-secrets.sh
@@ -6,12 +6,15 @@ makePasswordSecret() {
     [[ -e $1 ]] || apg -m 20 -x 20 -M Ncl -n 1 > "$1"
 }
 
-makePasswordSecret bitcoin-rpcpassword
+makePasswordSecret bitcoin-rpcpassword-privileged
+makePasswordSecret bitcoin-rpcpassword-public
 makePasswordSecret lnd-wallet-password
 makePasswordSecret liquid-rpcpassword
 makePasswordSecret lightning-charge-token
 makePasswordSecret spark-wallet-password
 
+[[ -e bitcoin-HMAC-privileged ]] || rpcauth privileged $(cat bitcoin-rpcpassword-privileged) | grep rpcauth | cut -d ':' -f 2 > bitcoin-HMAC-privileged
+[[ -e bitcoin-HMAC-public ]] || rpcauth public $(cat bitcoin-rpcpassword-public) | grep rpcauth | cut -d ':' -f 2 > bitcoin-HMAC-public
 [[ -e lightning-charge-env ]] || echo "API_TOKEN=$(cat lightning-charge-token)" > lightning-charge-env
 [[ -e nanopos-env          ]] || echo "CHARGE_TOKEN=$(cat lightning-charge-token)" > nanopos-env
 [[ -e spark-wallet-login   ]] || echo "login=spark-wallet:$(cat spark-wallet-password)" > spark-wallet-login
diff --git a/pkgs/generate-secrets/rpcauth/rpcauth.py b/pkgs/generate-secrets/rpcauth/rpcauth.py
new file mode 100644
index 0000000..b14c801
--- /dev/null
+++ b/pkgs/generate-secrets/rpcauth/rpcauth.py
@@ -0,0 +1,46 @@
+#!/usr/bin/env python3
+# Copyright (c) 2015-2018 The Bitcoin Core developers
+# Distributed under the MIT software license, see the accompanying
+# file COPYING or http://www.opensource.org/licenses/mit-license.php.
+
+from argparse import ArgumentParser
+from base64 import urlsafe_b64encode
+from binascii import hexlify
+from getpass import getpass
+from os import urandom
+
+import hmac
+
+def generate_salt(size):
+    """Create size byte hex salt"""
+    return hexlify(urandom(size)).decode()
+
+def generate_password():
+    """Create 32 byte b64 password"""
+    return urlsafe_b64encode(urandom(32)).decode('utf-8')
+
+def password_to_hmac(salt, password):
+    m = hmac.new(bytearray(salt, 'utf-8'), bytearray(password, 'utf-8'), 'SHA256')
+    return m.hexdigest()
+
+def main():
+    parser = ArgumentParser(description='Create login credentials for a JSON-RPC user')
+    parser.add_argument('username', help='the username for authentication')
+    parser.add_argument('password', help='leave empty to generate a random password or specify "-" to prompt for password', nargs='?')
+    args = parser.parse_args()
+
+    if not args.password:
+        args.password = generate_password()
+    elif args.password == '-':
+        args.password = getpass()
+
+    # Create 16 byte hex salt
+    salt = generate_salt(16)
+    password_hmac = password_to_hmac(salt, args.password)
+
+    print('String to be appended to bitcoin.conf:')
+    print('rpcauth={0}:{1}${2}'.format(args.username, salt, password_hmac))
+    print('Your password:\n{0}'.format(args.password))
+
+if __name__ == '__main__':
+    main()