Research

RAND report finds little evidence of Zcash use for illicit or criminal purposes

Messari

May 6, 2020 ⋅  1 min read

Today research organization RAND released a study on Zcash’s use for illicit or criminal purposes. The 65 page report found that despite Zcash’s enhanced privacy, there is little evidence of large-scale use for money laundering, terrorist financing, or illicit trade. Zcash only has a minor presence on the dark web marketplaces and forums reviewed by RAND.

The report also identified Bitcoin as the dominant dark web cryptocurrency. Ideas for why this is the case include Bitcoin’s network effects, lack of ease of use of Zcash, skepticism of over Zcash anonymity, lack of education, and perceptions of the Zcash brand.

Why it matters:

  • A common misperception about cryptocurrencies is that they have widespread use in dark net markets. The concern is particularly elevated for privacy preserving cryptocurrencies, which make transactions harder to trace. The report dispels the notion that privacy preserving cryptocurrencies are large facilitators of various illicit or criminal activities.
  • Shielded transactions on Zcash have been rising substantially recently. The report points to how Zcash is likely being used for honest purposes.

Let us know what you loved about the report, what may be missing, or share any other feedback by filling out this short form. All responses are subject to our Privacy Policy and Terms of Service.

Upgrade to Messari Pro

Gain an edge over the market with professional grade tools, data and research.

Already a member? Sign in

Upgrade to Messari Pro

Gain an edge over the market with professional grade tools, data and research.

Already a member? Sign in

Mentioned in this report

Read more

Research Reports

Read more

Based on your watchlists

Create a new watchlist
Read more

Research Reports

Read more

Based on your watchlists

Create a new watchlist

Mentioned in this report