In a recent briefing to the House Financial Services Committee, Yaya Fanusie brought to attention that the expansion and development of cryptocurrency are not beneficial to the terrorists. The public has always thought that there is a connection between criminal and terrorist activities with virtual currencies.
Well, thanks to Fanusie, he has put this outrageous myth and belief to rest. The expert Yaya Fanusie is a member of the foundation for defense of democracies center on sanctions and illicit. Fanusie has made a lot of recommendations on matters of security and has been consulted many times on the same.
Terrorists prefer Cash to Cryptocurrency
First off cryptocurrency adoption dramatically relies on technological infrastructure. This in itself puts terrorist groups at a disadvantage. Common terror groups such as Al-Qaeda, ISIS and Bokoharam operate in remote areas of the Middle East and Africa. Such areas as pointed out by Fanusie, don’t adequately support virtual currency adoption.
On the same note, different from other formal modes of finance, cryptocurrency requires some degree of knowledge and technicality thus tricky for some lads to grasp.
The blockchain ledgers common to crypto as you know leaves behind a public record, these create a trail that can be traced back to the terrorist.
Looking back at the history of cryptocurrency, you will discover that the government has always been on the lookout ever since cryptocurrencies gained relevance. In this way, Fanusie holds that government investment and research on cryptocurrency has facilitated tightening the rope and filling the loopholes through tracking of transactions.
This presents a dangerous situation for terrorists. As online fundraising through cryptocurrency for groups such as white supremacists has been successful, the same cannot be said for terrorist groups.
Using a case study of a terror group known as Mujahideen Shura Council, Fanusie demonstrates that it was only able to raise $500 within the year 2016 which was only two contributions. According to Fanusie, many terrorist groups have tried to raise funds through virtual currency contributions, but in the end, cash is still the king.
For the cryptocurrency traders and the whole crypto world as a whole, this creates an environment of trust. Debunking the myth of the relationship between criminal and terror activities with cryptocurrency only ensures that virtual currencies continue to grow. More people will come in and accept cryptocurrency as a secure mode of finance just like any other traditional finance.