Digital currencies have been garnering worldwide attention and gaining global acceptance. In recent news, Sigal Mandelker, undersecretary of the Treasury of the United States of America has stated that digital currencies could be cited as the “next frontier” in combating terrorism. The comments were made during the 19th international conference on counter-terrorism as reported on the state’s official website on 11 September.
Cryptocurrency: The Digital Frontier
Mandelker stated that most of the international terrorist groups rely predominantly on traditional sources of finance for example loose cash. This would help establish cryptocurrency as the next rising frontier against global terrorist groups. Terrorist groups and organizations are always on the prowl for new ways to raise and transfer their funds without suspicion and detection by law officials.
Mandelker has also spoken about Facebook’s overly hyped digital currency, Libra stablecoin, and the prerequisites it must meet to counteract the anti-money laundering and terrorism financing.
Mandelker stated that in the month of February, Hamas, the Palestinian Sunni-Islamist fundamentalist militant terror group requested bitcoin donations through social media. It was reported in March that two specific addresses each received about $5000 each in donations.
The Growing Need for Compliant Financial Tech Programs
Mandelker also warned that cryptocurrency may become non-compliant if it’s constantly attacked by fraudulent trading and illicit activity. Thus a highly compliant system with the ability to counterattack terror attacks and support group is needed. Mandelkar stated that the government of the United States of America is working with international organizations and nations to keep the communities safe from terrorists and their acrimonious attacks.
US congressman, Patrick McHenry in July shared a rather conflicting approach than the one stated by Sigal Mandelker above. McHenry stated that all attempts to sabotage Bitcoin and other digital currencies are futile, thereby branding them infallible.