Could Bitcoin's Associations with Terrorism Lead to its Ban?

Guest Author | February 3, 2015 | 8:45 am

Could Bitcoin's Associations with Terrorism Lead to its Ban?

Guest Author | February 3, 2015 | 8:45 am


One of the more complex aspects of global terrorist activities is to be traced in financial transactions. And it has become more challenging since the Bitcoin came into the picture.

The Bitcoin anonymity favors terrorist funding

Over the past few months, the United States Central Commands have been studying the alternative payment methods terrorist organizations raise and transfer money around the globe to support their activities. Digital currencies proved to be of the most efficient mechanisms for the transfer of funds due to their decentralized nature that facilitates anonymous donations as opposed to traditional banking transactions with the use fiat currency. Recently, an Israeli analyst has come up with concrete evidence that the ISIS is raising funds in Bitcoins, most likely in the United States, to fund their operations.

The Bitcoin criminalization on a hype

Also recently, the British Bankers’ Association (BBA) criminalized the Bitcoin for alleged associations with terrorism. Anthony Browne, chief executive of the BBA, told The Sunday Telegraph, that:

“If terrorists and criminals are resorting to unregulated currencies, it will be far harder for the law enforcement and intelligence agencies to hunt down.”

On the same page, Russia blocked a few Bitcoin-related websites, considering the cryptocurrency as accountable for hurting the Russian economy.

Is Bitcoin’s ban a solution?

Law enforcement policies could criminalize and – eventually ban – the Bitcoin. In fact, global media and governmental propaganda put major pressure on its criminalization, given that the newborn Bitcoin terrorism receives extended attention. However, is this really a solution to stop the terrorist activities? In fact, the downside to such a strategy could be the cost of enforcement itself.

A love-hate relationship

There is little doubt that tracing anonymous transactions increases the complexity of associating them with real people. On the other hand, most governments use the cryptocurrency terrorism as a means to control the people in the fear of forthcoming wars.

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