RAND Corporation, an American nonprofit global policy think tank, has stated that Cryptocurrencies are not well-suited for the needs of terrorist groups. They said in a report, titled “Terrorist Use of Cryptocurrencies: Technical and Organizational Barriers and Future Threats,” is focused on two main angles, first how terrorists use Cryptocurrencies in their current state and in second how could they possibly use them in the future as the industry evolves. The though-leaders of the nonprofit organization believe that Cryptocurrencies currently pose no significant threat as a means of terrorism financing. However, if Cryptocurrencies, as the report noted, started providing anonymity and improved security, combined with the lack of relevant state regulations, the risk of their potential use by terrorists would increase.
The corporation further considered that trading in countries without proper regulation or on unregulated markets like Darknet contributes to a higher risk of crypto being used for illicit purposes. Regardless of those threats, RAND noted that regulation and oversight of the industry, along with international cooperation between law enforcement and the intelligence community could help prevent terrorists from using crypto to fund their illicit activities. They continue that as long as new crypto hacks emerge and prices remain unstable, terrorist groups are unlikely to use them to their full potential.
In this regard, it was reported in last September that the U.S. House of Representatives passed a bill that that would set up a crypto task force to combat terrorist use of Cryptocurrencies. That bill contained a reward policy for supporting regulators in giving information leading to convictions related to terrorist use of digital currencies. Headquartered in Santa Monica, California, the RAND Corporation is a global policy think tank that conducts research and analysis for the U.S. armed forces.