Interesting article on CNBC regarding criminal uses of cryptocurrency. They make two significant points. First, the percentage of criminal transaction volume on the Bitcoin blockchain has dropped as legitimate transactions have moved in:
Although hard numbers on criminal activity in digital currencies are difficult to pin down, Shone Anstey, co-founder and president of Blockchain Intelligence Group, estimates that illegal transactions in bitcoin have fallen from about half of total volume to about 20 percent last year.
“Now it’s significantly less than that,” he told CNBC earlier this month, noting that overall transaction volume has grown globally.
An anonymous DHS official suggested that criminals are moving into currencies like Monero and Ether:
A U.S. Homeland Security official confirmed to CNBC in a phone interview on Thursday that criminals are “looking more closely at other currencies like monero and ethereum.”
I am skeptical of the latter, though, since the Ethereum blockchain is just as open as the Bitcoin blockchain.