Contact list is the follow list, so it is public.
If you only start a chat with a person without adding him to your contacts then the metadata of you writing him is not public.
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Mmh given how privacy oriented this app is intended to be, I'll say we should have private/encrypted contacts as default, no?
Yes this has to be designed better to be intuitive with the privacy aspects.
If you start a chat with someone, nobody knows about it.
But adding someone to your contact list is the same as your follow list in other Nostr clients, so those are inherently public.