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

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.