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Why people still connect cryptocurrencies with terrorism
Written by Davies on / Reading time: 5 minutes.
Some people believe that the link between cryptocurrencies and the terrorism is more alive than ever. To think that cryptocurrencies are an easy target to fund illicit actions is nothing else than the reflection of a reality that it is about to be fought. We will not deny the obvious things, but we cannot judge an entire ecosystem because some people use it for other purposes. We have already mentioned some examples on previous posts, as the dollars and financing of nuclear bombs. Nobody stopped using dollars for that reason.
In addition, Bloomberg recently created an interactive infographic that highlights the most important financial scams in the last decade. At the top is Danske Bank in addition to JP Morgan Chase, City Group, ING, HSBC, Commerzbank, Deutsche Bank, Danske Bank, Standard Chartered, Commonwealth Bank of Australia, 1MDB, and others. The list had nothing related to cryptocurrencies and amounted to 2 billion a year, i.e., 44,444 times the illegal amount of money laundering with Bitcoins…
However, our goal is not to bury this idea, but to remove it. Despite its 10 years of experience, cryptocurrencies are in continuous development and hundreds of professionals work every day to make it a 100% secure system.
Every day, these cryptocurrency’s professionals seek to demonstrate that they don’t have to be linked to illegal activities, but they don’t deny the reality. Our objectivity takes us to delve into the reasons why, part of the society, especially those who are reluctant to use cryptocurrencies closely related them to terrorism:
- Some criminals take advantage of the anonymity of some virtual currencies to launder money or finance terrorism.
- Certain terrorist groups have found an opportunity for not identifiable transactions or for transactions with difficult tracking.
- The Islamic State seems to have lost power, so it no longer makes use solely of the oil revenues. They have seen in the cryptocurrencies "an alternative source of income", as explained by Cripto Tendencia.
- An example of this is case of Zoobia Shahnaz, a 27-year-old woman who pleaded guilty to supporting the Islamic terror group ISIS with a scam involving bank fraud, bitcoin and other cryptocurrencies, and money laundering authorities said.
As a result, the European Union stressed last year in including new measures against the use of cryptocurrencies for money laundering and other activities. Our question today is: why are we focusing on limiting the use of cryptocurrencies and not improving their safety?
How can we tackle the problem?
We believe that strengthening the security is the wisest point of view to address the problem. DAVIES is committed to the active work with the authorities and with mixed models of registration and identification. Nobody doubts that cryptocurrencies have become a revolutionary system that frightens the traditional financial system. It is vital to base this fear on the competition for the provision of services and not for the danger of its actors.
We believe that this payment system provides some undeniable advantages. More than 30% of the world's population does not have a bank account. Maybe, for you, that you live in a developed country, to have a bank account is as simple as the act of drinking water. However, for developing countries, such as Colombia, more than 73% of the population lives without access to banking resources, figures that grow even more if we establish a dividing line between men and women.
DAVIES can become your own bank and no one but you have the power over your money. It is enough to have a smartphone and internet connection to begin to make instant payments at a low cost or make loans between individuals at any time and place.
Reinforcement of cryptocurrency security
Have you heard of blockchain technology? A revolutionary phenomenon, right? It has become one of the trending topics. 10 years ago, Bitcoin was born based on this string of blocks, and since then, thousands of professionals are wondering how to take the maximum advantage from it.
The reality is that the alteration of the information contained in this system is virtually impossible. Moreover, a network of users checks the veracity of the information. It is free of errors and its process is fast. Even so, there are many experts who continue to rely on the guarantee of transparency and security.
New cryptocurrencies have created their own society's support. In the internet of value, you are not alone. A pseudo anonymous world accompanies you, because although the transactions are not identifiable, they are traceable. Any cryptocurrency creator wants to use their medium as a way for illegal activities. Therefore, they are stomping on the ground of security.
We try to be objective with the reality that has developed in the world. Virtual currencies promise a financial future without intermediaries. We're not blockchain technology preachers, but we are confident in their chances and work closely to further improve the security of information and people. Hundreds of prejudices relate cryptocurrencies with illicit actions, but they confuse the guilt. Who commits a crime is responsible of this disaster, regardless of the banking application they are using to manage the assets.
If we leave aside everything criticized, each error, or each loose in life, we would be lost in the search of perfection that does not exist. We know that there is a relationship between cryptocurrencies and terrorism. Accepting the reality is OK. But we have to decide from the other side. From the proactive and objective side.
Accustomed to hear constant critics to this new way of understanding the financial world, few people stop to reflect.
The problems can be seen in two ways: as the objective of a reality, or as a solution to it. What will be your choice?