Industry Analysis

A new report shows a different cryptocurrency path for al-Qaeda and ISIS

Since the advent of Bitcoin, it has been depicted that terrorist groups such as al-Qaeda and ISIS are heavily using virtual currency. But a new report has indicated a different cryptocurrency path on the contrary.

The report by RAND Corporation, a research firm which has a working relationship with some defense agencies in the United States, has been compiled as a book titled ‘Terrorist Use of Cryptocurrencies: Technical and Organizational Barriers and Future Threats.’ The report has brought to light that terrorists have chosen another cryptocurrency path that contradicts earlier reports that terrorist groups such as al-Qaeda and ISIS are moving towards virtual currencies.

The reports’ authors set out to establish whether terrorist groups involved in arms trafficking and drugs among other criminal activities have a cryptocurrency path in making and receiving payments. Surprisingly, the report noted, terrorist need a unique cryptocurrency that is not yet available. This limits their digital currency usage.

For a cryptocurrency to qualify for use by terrorists, the authors noted, it must provide “anonymity, usability, acceptance, reliability, and volume.”

According to BreakerMag:

An ideal cryptocurrency for these organizations would look something like a cross between Bitcoin and Zcash. It would ideally have Bitcoin’s transaction volume and adoption for two reasons. Higher transaction volume makes for cheaper transactions, and wider adoption means a series of large transactions will arouse less suspicion…. As for Zcash, its appeal is in its anonymity.

Another reason the report indicates that a beaten cryptocurrency path is yet to be established by terrorist groups is that cryptocurrency projects are accepting regulatory oversight and working with law enforcers. However, since the cryptocurrency space is still developing, the report notes, these groups may finally find their match.

Do you think terrorist groups, even if not entirely, are using cryptocurrency to move small amounts of money?

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Philip is an experienced blogger keen on staying updated with trends and news surrounding the blockchain and Bitcoin space. With several years of freelance experience in various industries, Philip brings his knowledge and experience into the crypto space.

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