US: Can Bitcoin be taken for a terrorist weapon?

Friday 9 May 2014 13:54 CET | News

The Department of Defense has commissioned the Combatting Terrorism Technical Support Office with investigation of whether Bitcoin may be convertible into a potential terrorist threat, reports.

The division, via a program, can provide the military with intelligence so that they may understand how modern technologies could pose threats to national security, including Bitcoin and other virtual currencies, according to International Business Times, cited by the same source.

A memo, detailing some of the CTTSO projects, states that Bitcoin usage may pose a threat for the financial system by increasing the opaqueness, transactional velocity, and overall efficiencies of terrorist attacks, according to Bitcoin Magazine, the source cites.

Moreover, an additional concern relates to the anonymity afforded by Bitcoin transactions. The transactions are public, but the people involved in the operations are unnamed.

Some high-profile cases have highlighted Bitcoin’s vulnerability, including Silk Road which the digital black market shut down in October 2013 by the FBI. Silk Road accepted only Bitcoin for payments. The site’s founder was charged with drug trafficking and money laundering.

A Treasury Department probe found no evidence of Bitcoin being used to finance terrorism, but the anonymous nature of the transactions still has many law enforcement officials worried.

CTTSO is concerned that anonymous networks are a way to successfully traffic drugs, weapons, people and nuclear tech under the radar.

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Keywords: US, Bitcoin, digital currency, crypto-currency, terrorism, threat
Categories: Fraud & Financial Crime
Countries: World
This article is part of category

Fraud & Financial Crime