Is the dark web primarily using Bitcoin? Research shows that the volume of transactions in fiat currency on the dark web is 800 times that of Bitcoin.

A recent study published by Messari shows that Bitcoin is not the financial threat that some critics claim it to be. Interestingly, this study comes at a time when U.S. Treasury Secretary Steven Mnuchin has recently made comments about "cryptocurrency posing a national security risk."

According to data from Chainalysis and the United Nations Office on Drugs and Crime (UNODC), traditional fiat currencies are used for money laundering on the dark web at a rate 800 times higher than Bitcoin. These figures do not even include transactions outside of the dark web.

Mnuchin vs. United Nations: Who's Correct?
Previously reported by ABM, U.S. Treasury Secretary Steven Mnuchin stated in a press conference:

Cryptocurrencies like Bitcoin are being used to support billions of dollars of illegal activities, such as cybercrime, tax evasion, ransomware, illicit drugs, and human trafficking, making it a national security issue.

However, according to statistics compiled by the United Nations, this starkly contrasts with the remarks made by U.S. Treasury Secretary Steven Mnuchin, who appears to have exaggerated the facts.

In addition, Messari also referenced a report by the European Union Agency for Law Enforcement Cooperation titled "Why Cash is Still King."

The report explains that nearly all criminals at some stage use traditional fiat currencies in the laundering process, indicating that Bitcoin and cryptocurrencies are not as popular among criminals:

Not to diminish the role of cash, but all criminals at some point in the money laundering process use cash. While authorities in various countries are concerned about the potential misuse of virtual currencies by criminals, the report did not find similar instances or risks, with law enforcement agencies identifying traditional methods, particularly the use of cash, as the main characteristics of money laundering schemes.

National Security Issue
The report also presents a startling statistic. Over the past decade, the currency supply of the Federal Reserve has increased by 13,664% compared to Bitcoin.

The report also points out that in a recent statement, Mnuchin mentioned that the U.S. government will intensify enforcement to prevent the illegal use of cryptocurrencies. However, U.S. authorities have not yet addressed policies to combat the significant use of fiat currencies in criminal activities.

Further Reading

• Can you believe it? Blockchain projects even targeting the moon!
• U.S. Government Expresses Support for Blockchain Technology, Remains Skeptical on Regulation

Join now to receive the most comprehensive information on fintech, blockchain news, and industry examples!