Inca Digital, a data analytics firm for digital assets, will study the implications of digital assets for national security under a one-year contract with the Defense Advanced Research Projects Agency (DARPA), the company announced Friday. . DARPA is the R&D division of the United States Department of Defense.
Inca Digital will be working on a project called “Mapping the Impact of Digital Financial Assets”, which aims to create a “cryptocurrency ecosystem mapping tool” to provide information to the US government and commercial companies.
In addition to looking at potential money laundering and sanctions evasion, the project will help understand interactions between traditional and digital financial systems, money flows in and out of blockchain systems, and other uses of cryptocurrency in areas of concern to the US government. Inca Digital CEO Adam Zarazinsky said in the announcement:
“The Department of Defense and other federal agencies need better tools to understand how digital assets work and how to leverage their jurisdiction over digital asset markets worldwide.”
DARPA program manager Mark Flood told The Washington Post, “DARPA is not involved in surveillance. I want to emphasize that in this investigation we are careful not to get involved with personally identifiable information.”
Related: Simba Chain wins another contract from the US Department of Defense
DARPA has been looking at blockchain technology for several years, both for its security implications and as a potential tool for its own purposes. In June, it partnered with Trail of Bits to analyze the extent to which blockchains are decentralized and identify their vulnerabilities.
Inca received a Phase II Small Business Innovation Research for the project. The company is the developer of the Nakamoto Terminal, a system used by the US Commodity Futures Trading Commission for market surveillance. It was founded in 2009 by former Interpol analysts.