Islamic state allegedly uses Bitcoin for secret transactions

Members of the coalition worry that the use of Bitcoin, which is harder to monitor than bank accounts, would make it even more difficult to choke off the funds and defeat the group. The suspicion about the use of Bitcoin reinforces speculation that the social media-savvy group is using cyberspace not only to recruit new members but collect and secure money to fund its activities.

The extremist group has been apparently securing funds through trade in commodities such as petroleum and natural gas, but questions have remained about how its members transfer money and make payments.

The virtual currency in general provides users with secrecy and enables them to exchange it with currencies such as USD and the CNY online even though doing so is not authorized by governments or central banks.