Peter Dutton, Australia’s Home Affairs Minister, believes that terrorists are using cryptocurrency to pay for their missions. He is probably one of those with SAD (selective attention syndrome), who only hears what he wants to hear, since there have already been numerous studies to show that fiat is still the preferred tool in a terrorist’s financial arsenal. However, he is missing the larger picture and should read deep into the large stack of data regarding how crypto actually works. It has already been shown that it is much easier to track crypto transactions than fiat transactions.
Dutton, in a speaking engagement in Melbourne to discuss terrorism and how it can be thwarted, reportedly told the attendees, “The anonymity afforded by such technologies enables terrorist financiers to obfuscate their activities. The increasing use of digital and cryptocurrencies, stored-value cards, online payment systems and crowd-funding platforms provide new channels through which terrorism may be financed,” SBS reported.
That might all be true; however, the same arguments can be said of conventional monetary channels that have been in use by terrorists for decades, if not centuries. If crypto were to be banned simply because it could be used by terrorists, then fiat would need to be banned, as well, as would any type of bartering system ever conceived.
A recent investigation led by multiple law enforcement departments in several countries proved exactly how easy it is to follow the crypto transaction trail. Dr. Craig Wright has asserted since the original Bitcoin whitepaper was released, and which Bitcoin SV (BSV) adheres to unwaveringly, that crypto was never designed to work as an anonymous system, but, rather, a private one that allowed individuals to conduct transactions with one another directly while adhering to financial regulations. That point was driven home by that investigation.
About three weeks ago, the U.S. Department of Justice revealed that it, along with other departments tasked with ensuring laws are upheld, used a single computer to track down 337 users through their crypto transactions. After arresting South Korean national Jong Woo Son for running a child porn website, computer forensics investigators were able to locate his crypto-paying customers by following the traces left by their purchases. Charges were subsequently levied against people in Spain, Germany, Australia, Brazil, the U.K., Canada, among other countries.
Perusing news outlets around the world, it doesn’t take much effort to find reports of fiat being used for plenty of illicit activity, even at some of the highest levels of the financial ecosystem. However, Bitcoin—the original Bitcoin—was designed to make it easy to follow the trails from start to finish, always giving a clear and transparent picture of what is going on in the space. The fact that the records stored on the blockchain are immutable makes it even more difficult for businesses or entities to defraud governments and consumers, and strengthens the overall global economy.
This is the point that many in positions of financial power still overlook as they skim the headlines. Without truly exploring the nature of Bitcoin, they’re doing an injustice to themselves, the people and the digital currency ecosystem.
New to Bitcoin? Check out CoinGeek’s Bitcoin for Beginners section, the ultimate resource guide to learn more about Bitcoin—as originally envisioned by Satoshi Nakamoto—and blockchain.