Terrorist Use of Cryptocurrencies : Technical and Organizational Barriers and Future Threats

The success of counterterrorism finance strategies in reducing terrorist access to official currencies has raised concerns that terrorist organizations might increase their use of such digital cryptocurrencies as Bitcoin to support their activities.

This report examines the possibility of more-widespread adoption of cryptocurrency by terrorist groups by considering both the needs of such groups and the advantages and disadvantages of the cryptocurrency technologies available to them.

This research should be of interest to a wide variety of stakeholders, including policymakers concerned with counterterrorism, those making decisions about international regulation and harmonization, and people who work with and invest in cryptocurrencies.

The research was conducted within the International Security and Defense Policy Center of the RAND National Security Research Division (NSRD).