Bitcoin for Terrorism Narrative Changes, Defense Expert Says Crypto is Inefficient for Terrorists
Defense Expert To The US Congress Says Cryptocurrencies Are Inefficient For Terrorists
In general, an important part of the population thinks that cryptocurrencies are related with terrorism and criminal activities. However, there are some experts that believe that these new digital assets are not effective for criminals and terrorists.
Yaya Fanusie, an important senior member of the Foundation for Defense of Democracies Center on Sanctions and Illicit Finance, says cryptocurrencies are not the preferred method for terrorists to move funds. Indeed, he said that cash is still the best way for terrorist networks to move money.
Ted Knutson wrote in Forbes that terrorists are having several problems to deal with virtual currencies. The regions where jihadists and other criminal organizations operate are not the most technologically advanced places.
It is still complicated for them to convert cryptocurrencies into fiat money without being captured or recognized by security or intelligence agencies. The most important terrorist organizations such as al Qaeda, ISIS, Boko Haram and others are not able to benefit from the expansion of virtual currencies.
As per Fanusie’s comments, cryptocurrency critics that make a relation between digital assets and criminal activities (related to terrorism) are just mistaken. Back in 2017, Jerry Britto, CEO of Coin Center, informed that according the CNAS (Center for a New American Security), terrorist move over 8 Bitcoins.
Furthermore, terrorists have been using traditional financial institutions to send and receive funds. These criminal organizations do have knowledge about how to send and receive funds through mainstream financial institutions. That means that there is no clear incentive to move to virtual currencies.
As cryptocurrencies expand, governments are investing more and more funds into research and development. They investigate and analyse how to better regulate and control them. Indeed, regulatory and security agencias can now track transactions in the most important blockchains such as Bitcoin or Ethereum.
Additionally, Yaya Fanusie says that even if Jihadist do not use virtual currencies, websites that have radical propaganda receive donations in cryptocurrencies. In this way, it is easier for them to spread the word about their rhetoric and indoctrinate other members.