New research by RAND’s National Security Research Division (NSRD) scrutinizes the use of cryptocurrencies in the context of terrorist activities. While it is not currently viable for terrorist groups to exclusively rely on cryptocurrencies for their financial transactions, the researchers believe that this may change in the future.
The study identifies 4 main factors that will make the use of cryptocurrencies more viable to terrorist groups. These are:
- increased global adoption of cryptocurrencies
- growing adoption of second-generation cryptocurrencies that are easier to use anonymously
- increased trading activity in decentralized exchanges and in countries lacking regulatory oversight
- rising adoption of cryptocurrencies in complementary and adjacent markets such as dark web market places
The researchers also list 4 key factors that will make the use of cryptocurrencies less viable to terrorist groups. These are:
- continued uncertainty and internal conflicts within the crypto community
- increased cooperation by law enforcement aimed at monitoring cryptocurrency users and funds
- more regulatory oversight for the most popular cryptocurrencies and a decline in use of alternative currencies
- erosion of trust in cryptocurrencies due to frequent attacks on exchanges and incidents involving theft
Read more: Terrorist Use of Cryptocurrencies – Technical and Organizational Barriers and Future Threats
