Myth busted: Crypto not viable for terrorism use, says Rand Corp.

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Cryptocurrency denialists have repeatedly tried to say that crypto was only good for criminal and terrorist activity. They believe this because they haven’t bothered to actually educate themselves on the facts, relying solely on headlines for edification. The myth has already been shown to be inaccurate on numerous occasions and has now been busted again by a major nonprofit think tank out of the United States.

According to a report published by the RAND Corp.’s National Security Research Division think tank a few days ago, titled “Terrorist Use of Cryptocurrencies: Technical and Organizational Barriers and Future Threats,” cryptocurrencies are not viable for terrorists. The organization adds, “Current cryptocurrencies are not well matched with the totality of features that would be needed and desirable to terrorist groups but might be employed for selected financial activities.”

Part of the reason for crypto not being seen as an economic solution by terrorists, according to Rand, is because of unstable prices and hacking activity. The think tank asserts that, as long as these two exist, terrorists will not turn to crypto.

If governments want to ensure that crypto isn’t used by terrorists, one of the most effective methods is to create regulations. RAND explains its position, stating, “If the cryptocurrency systems that are most widely used are incorporated into the regulatory system and those that are incompatible are abandoned or remain marginal because of lack of support, then terrorist groups and other illicit actors may find that the digital world is less, not more, hospitable.”

The think tank asserts that trust in crypto will remain low as long as fraudulent activity and theft is found in the ecosystem. This is only partly true, as the fiat ecosystem is overrun with fraudulent activity and theft, yet there is, to a degree, a certain amount of trust in fiat. 

RAND (Research & Development) Corp. is a think tank located in Washington, D.C. that helps formulate global policies. It conducts research and analysis for the military and other government entities and members of the organization have been involved in the development of technologies, including artificial intelligence and the Internet.