One of the most important arguments of cryptocurrency opponents is that virtual money is used in the shadow sector, in particular, to finance terrorism. However, experts claim that these concerns are greatly exaggerated.
Cryptocurrency is becoming increasingly less popular among criminals, since it does not provide complete anonymity and is controlled by regulators. Terrorists no longer trust popular cryptocurrencies, however, they are not rushing to use new ones either due to their unreliability and lack of liquidity, writes Invest-Forsyth.
According to a study by the Center for International Security and Defense Policy of the RAND Corporation, terrorist organizations like Al-Qaida (prohibited in the Russian Federation - ed.) and ISIS (prohibited in the Russian Federation - ed.) are no longer interested in cryptocurrency. Criminal communities involved in drug and people trafficking, have no interest in cryptocurrency either.
This is all due to the fact that the anonymity of all market transactions in major cryptocurrencies today is minimized, Kommersant newspaper writes. It is especially inconvenient to perform large transactions in cryptocurrency, since it must be continuously converted into fiat, which is becoming increasingly more difficult. Less-known cryptocurrencies, which are still anonymous, such as Monero or Zcash, have other disadvantages that make them unattractive.
Meanwhile, the authors of the study emphasize that one should not underestimate the digital market potential for shadow operation use. The rapid development of technology can contribute to completely dodge law enforcement control. But at the moment, according to Kaspersky Lab, payment for goods with cryptocurrency is significantly less popular than bank cards or PayPal.