National Security Implications of Virtual Currency: Examining the Potential for Non-state Actor Deployment

Abstract

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Amalgamation of Blockchain Technology and Internet of Things for Healthcare Applications

“…As per the IBM report published in 2019, several healthcare leaders predicted that blockchain technology will play a major role in the healthcare sector due to its decentralized framework for sharing medical records safely, better management of clinical trials, and regulatory compliance enforceability. Further, it is expected that the global market for blockchain technology in the healthcare sector may soon cross $500 million by 2022 [11,33,38,42]. Still, technology has miles to go and adapt to the existing systems and lend useful value to improve efficiency of the present healthcare industry.…”

Blockchain Empowers Social Resistance and Terrorism Through Decentralized Autonomous Organizations

“…For example, the Islamic State reportedly solicited donations by posting a Bitcoin address. 21 Despite these advantages, numerous disadvantages have resulted in a slow adoption of cryptocurrency by terrorist groups. Major problems are the great volatility of crypto-assets, which creates organizational uncertainties, the reduced ability of terror leaders to exercise control over funds entrusted to agents, and the problem of exchanging crypto-assets back into fiat currencies.…”

Features of regulating virtual assets operations for AML/CFT purposes

“…87 A 2015 RAND report posited that there was little evidence terrorists were developing their own VCs. 88 According to a January 2016 Europol report, "Despite third party reporting suggesting the use of anonymous currencies like Bitcoin by terrorists to finance their activities, this has not been confirmed by law enforcement." 89 Scholars generally agree that while virtual currencies have gained in popularity, their expansion among terrorist organizations has been slow and has lagged behind transnational criminal uses of the technology.…”