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US Defense Department on Edge over Terrorist Adoption of Bitcoin

By: PanAm Post Staff - May 5, 2014, 12:44 pm

EspañolThe Combatting Terrorism Technical Support Office (CTTSO) of the US Defense Department is investigating whether the digital currency bitcoin is a possible terrorist threat. The International Business Times reports that the division will investigate how bitcoin, and other virtual currencies that provide an anonymity parallel to that of cash transactions, can threaten national security. CTTSO is concerned that anonymous networks may become more widely used to successfully traffic drugs, weapons, people, and nuclear tech under the government’s radar.

In the case of bitcoin, all transactions are public in a database called the blockchain, but the people involved in the operations cannot be easily identified. The anonymity is not total, as some high-profile cases have highlighted Bitcoin’s vulnerability. In October, the FBI managed to track and arrest the alleged owner of digital black market Silk Road, which only accepted bitcoins as payments and thus facilitated legal and illegal trade between users, ranging from mushrooms to murder-for-hire services.

The Treasury Department already looked into bitcoin over concerns of terrorism financing, but found no evidence. However, the relatively anonymous nature of the transactions still has many law enforcement officials worried.

Source: Fox News.