Tornado Cash and Blockchain Privacy: A Primer for Economists and Policymakers

Matthias Nadler () and Fabian Schär
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Matthias Nadler: https://wwz.unibas.ch/de/personen/matthias-nadler/

Review, 2023, vol. 105, issue 2, 122-136

Abstract: This article explores non-custodial crypto asset mixers such as Tornado Cash. We analyze what types of mixers exist and how they work. We discuss opportunities and risks and offer an approach, based on voluntary disclosure, that would allow financial market regulators to combat money laundering and illicit activities, while allowing honest users to interact with privacy-enhancing protocols. We explain how crypto asset mixers play an important role on public blockchains and that privacy may be difficult to attain without them.

Keywords: cryptoassets; blockchain (search for similar items in EconPapers)
JEL-codes: B27 D53 G18 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedlrv:95610

DOI: 10.20955/r.105.122-136

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