Bitcoin will be monitored by US govement

9month ago (12-15) admin Blockchain News 2439℃



On a mountainous stretch along the Orange River between South Africa and Namibia lies a small town called Orania, a homeland founded in the 1990s by white nationalists who introduced their own currency, the ora—probably the only tender in the world createdexclusively for whites.

The ora, paper money pegged to the South African rand, is one of hundreds of alternative currencies issued for mainly political reasons, but many of the newer currencies are increasingly virtual—digital representations of money consisting of nothing more than computer code. Most prominent among them: bitcoin, which, like conventional currency, can be traded online, transferred, stored or exchanged for cash. But, unlike conventional currency, it lives primarily on the internet, secured by layers of computer code.

This suits bitcoin users just fine. They want a secure way to exchange money by laptop, mobile phone or email. Yet so do terrorists and criminals, whom the U.S. government worries might develop and deploy their own uncrackable virtual currencies. Newsweek has learned hundreds of experts inside the nation’s defense and intelligence agencies, as well as private-sector researchers in finance, technology and various think tanks across the country—some of them under contract with the U.S. government—are now investigating how virtual currencies could undermine America’s long-standing ability to disrupt the financial networks of its foes and even permanently upend parts of the global financial system.

In 2003, Zarate led an elite team at the U.S. Department of the Treasury who engineered the model used today to target, block and freeze the finances of America’s enemies through their personal bank accounts—from Iranian money launderers to cronies of Russian President Vladimir Putin. This is how it works: Treasury’s Office of Terrorist Financing and Financial Crimes puts individuals and organizations on a blacklist, which is sent out to the world. Once on the blacklist, those targeted can no longer do business in U.S. dollars, which are involved in roughly 88 percent of the world’s foreign-exchange transactions, according to Switzerland’s Bank for International Settlements. In other words, they cannot bank at most financial institutions.

This ability to financially disrupt, disable and dismantle nefarious networks, is crucial to U.S. national security, Treasury officials say. It has proven effective for more than a decade and is often strongly preferable to deploying troops. “We have made it very difficult for members of the Islamic State to raise or move money around the world these days,” Zarate says. “Even Iran had a hard time finding safe havens.” In fact, years of financial pressure from the U.S. and its allies helped force Iran to negotiate with the White House and sign a landmark nuclear deal last year.

The biggest concern the U.S. has about virtual currencies, Zarate says, is that terrorists and other enemies might create one so powerful and so untrackable, that they’ll no longer need the global banking system, which the U.S. uses to financially starve them. This has yet to happen, but America’s defense and intelligence agencies are already trying to figure out how they might infiltrate or block such a malicious financial network.

Joshua Baron, an academic cryptographer and mathematician for the Rand Corp., one of the think tanks working with the U.S. government, published the first major research paper examining these issues late last year. (The paper was put out by Rand National Defense Research Institute, a federally funded entity sponsored by the Office of the Secretary of Defense, the Joint Chiefs of Staff, the Unified Combatant Commands, the Navy, the Marine Corps and the defense intelligence community.) Baron found that America’s enemies appear to have far more access in recent years to the kinds of advanced technology and encryption tools that would allow them to potentially design a virtual currency that could circumnavigate the global financial system. “We are seeing a trend toward increasingly sophisticated cyberservices being put into the hands of unsophisticated players,” he says. And while this may be handy for privacy-savvy Americans, it can make it much harder for the government and law enforcement to fight terrorists and criminals, he says.

So, is there any evidence that America’s foes have tried to create one of these nightmare virtual currencies yet? “Not that we found,” says Baron, who plans to release further research on this subject in the coming months. “But we are looking at ways for the government to disrupt any new virtual currencies that might be designed and deployed by terrorists, non-state actors or insurgents for everyday use.”

Rand’s research into the dangers of virtual currencies is not meant as an attack on bitcoin, Baron said. He believes the currency’s publicly visible ledger of transactions is too transparent to attract terrorists, criminals or enemies of the state. “I do not see bitcoin as the go-to currency for terrorists,” he says. “As it stands, it does not offer enough anonymity.”

But that doesn’t mean terrorists don’t use it. In late August, Yaya Fanusie, a former counterterrorism analyst for the CIA, flagged the first verifiable instance of a terrorist organization trying to raise funds through bitcoin. The Ibn Taymiyyah Media Center, an online jihadist propaganda organization based in the Gaza Strip, wasn’t raising very much money, notes Fanusie, now the director of analysis for the Center on Sanctions and Illicit Finance at the Foundation for Defense of Democracies. But, he adds, “this effort shows how terrorists are experimenting with new financial technology to expand funding.”

The implications of bitcoin and potentially more threatening copycat virtual currencies go well beyond terrorism. Bitcoin’s unique and widely accessible technology challenges the very bedrock of the global banking system. Blockchain, the digital record-keeping apparatus at the heart of the cryptocurrency, is used to generate, circulate and track bitcoins through computers within a global network that not only verify and record every transaction, but also check each other’s work. This decentralized way of doing business also can be used for countless other applications, prompting an estimated $1 billion of investments in the technology in 2016. Stock exchanges like Nasdaq and financial firms like Visa, for instance, are experimenting with Blockchain technology to replace slower, more expensive third-party record-keeping systems.

“With the introduction of Blockchain, a disruption of the global banking system is inevitable,” says Bala Venkataraman, global chief technology officer of banking and capital markets for Computer Sciences Corp., a digital information-technology company whose sister firm, CSRA Inc., runs the IT backbone of the National Security Agency (NSA).

Computer Sciences has hired hundreds of technologists and experts across the banking, insurance and health care sectors to examine how to “scale up” Blockchain technology for faster banking, trading, clearing and settlements, Bala says. “In a cryptocurrency world, you know who becomes the bank?” he asks. “You and I. You become not just the bank, but the central bank. And that can have enormous ramifications for things like sovereign authority. By 2040, I think we may be fully transitioned over to cryptocurrency. I don’t think anyone can stop it from happening.”

Meanwhile, CSRA, which also works closely the U.S. Department of Homeland Security, confirmed to Newsweek that it has been surveilling the progress of bitcoin since its early development for the U.S. government, but declined to comment further. (The NSA and DHS declined to comment as well.) A post on the web site of Computer Sciences, which has some top brass that overlaps with CSRA, offers a glimpse of how the former views bitcoin. Noting that global digital payments outstripped paper-based payments for the first time in 2014, led in part by millennials and the increased use of virtual currencies, it refers to bitcoin as a revolutionary innovation that’s “breathtaking in its ambition,” and striking for its “attempt to overthrow a sovereign authority.”

For now, Treasury officials at the Office of Terrorist Financing and Financial Crimes and the Financial Crimes Enforcement Network, say they are taking a do-no-harm approach to currencies like bitcoin by carefully regulating and monitoring them, but also allowing them to evolve. As one Treasury official notes, bitcoin has yet to reach the kind of scale that would remotely begin to rival the U.S. dollar. The busiest week on record for the cryptocurrency, which occurred late this year, the official said, came to $2 million, compared with $14 trillion of average daily U.S. dollar transactions.

Yet like Orania, bitcoin was created for political reasons—as a challenge to the global banking system. The virtual currency, launched at the height of the Great Recession, appeared with a newspaper headline carefully tucked into its genesis block, the currency’s cornerstone hunk of code. Taken from a January 2009 story in The Times of London, it reads: “Chancellor on brink of second bailout for banks.”

Manager

Follow Us Here Thanks !

Recommended Articles :

58 comment

  1. avatar
    -49#

    The following time I read a weblog, I hope that it doesnt disappoint me as a lot as this one. I imply, I do know it was my choice to learn, but I truly thought youd have something fascinating to say. All I hear is a bunch of whining about something that you could repair if you happen to werent too busy looking for attention.

    corburterilio at2017-04-01 00:18 Comment
  2. avatar
    -48#

    Hi exceptional blog! Does running a blog like this take a large amount of work?
    I have virtually no understanding of computer programming however I
    was hoping to start my own blog in the near future.
    Anyway, should you have any ideas or tips for new blog owners please share.

    I understand this is off topic but I just needed to ask.
    Kudos!

    manicure at2017-04-08 01:44 Comment
  3. avatar
    -47#

    I simply want to say I am just beginner to weblog and actually enjoyed your website. Almost certainly I’m planning to bookmark your site . You surely come with good articles and reviews. Thanks a bunch for revealing your blog site.

    blog here at2017-04-17 11:40 Comment
  4. avatar
    -46#

    Hi this is somewhat of off topic but I was wanting to know if blogs use WYSIWYG editors or if you have to manually code with HTML. I’m starting a blog soon but have no coding expertise so I wanted to get advice from someone with experience. Any help would be greatly appreciated!

    grapefruit essential oil at2017-04-22 19:59 Comment
  5. avatar
    -45#

    I merely need to advise you that I am new to having a blog and extremely enjoyed your work. Likely I am most likely to store your blog post . You indeed have amazing article information. Appreciate it for discussing with us your favorite domain page

    check these guys out at2017-04-23 02:15 Comment
  6. avatar
    -44#

    Surprisingly absorbing details you have mentioned, warm regards for posting.

    discover here at2017-04-23 02:45 Comment
  7. avatar
    -43#

    Absolute significant specifics that you have remarked, thanks a lot for publishing.

    Our site at2017-04-23 04:14 Comment
  8. avatar
    -42#

    Be sure that you have Silhouette Studio Designer Edition running and adhere to these easy actions to start! While it is crucial to have Silhouette Studio Designer Edition to import SVGs there is yet another step you’ve got to take to receive them actually cut. I am aware I’ve missed lots of nice anime collection, so should you have any suggestion, don’t hesitate to share about it in the comment section!

    Buddy Degiacomo at2017-04-23 05:56 Comment
  9. avatar
    -41#

    It’s suitable occasion to prepare some preparations for the forthcoming future. I’ve read this blog post and if I could, I desire to suggest to you you couple entertaining ideas.

    you could try these out at2017-04-23 07:02 Comment
  10. avatar
    -40#

    I really need to notify you that I am new to blogging and really adored your post. Most likely I am most likely to store your blog post . You certainly have outstanding article content. Like it for discussing with us your favorite website information

    check this site out at2017-04-23 10:52 Comment
  11. avatar
    -39#

    Hello there, just got alert to your website through Google, and found that it’s really informational. I will truly appreciate in the event you persist this post.

    Find Out More at2017-04-23 14:18 Comment
  12. avatar
    -38#

    Only time will definitely tell that, but they are actually starting to appear actually well brought in. They are comfy for pair of 70-somethings, however they are certainly not too smooth either.

    best percale sheets reviews at2017-04-24 13:32 Comment
  13. avatar
    -37#

    I really appreciate this post. I¡¦ve been looking everywhere for this! Thank goodness I found it on Bing. You’ve made my day! Thank you again

    kitchen remodel at2017-04-24 23:10 Comment
  14. avatar
    -36#

    This is really interesting, You’re a very skilled blogger. I have joined your rss feed and look forward to seeking more of your fantastic post. Also, I’ve shared your web site in my social networks!

    health magazine at2017-04-24 23:12 Comment
  15. avatar
    -35#

    you’re actually a just right webmaster. The web site loading velocity is amazing. It kind of feels that you’re doing any distinctive trick. Also, The contents are masterpiece. you’ve done a wonderful task in this topic!

    kitchen design ideas at2017-04-24 23:12 Comment
  16. avatar
    -34#

    wonderful issues altogether, you simply received a new reader. What might you suggest about your post that you simply made some days ago? Any sure?

    kitchen remodel ideas at2017-04-24 23:13 Comment
  17. avatar
    -33#

    Fantastic goods from you, man. I have understand your stuff previous to and you are just too fantastic. I really like what you’ve acquired here, certainly like what you’re saying and the way in which you say it. You make it enjoyable and you still care for to keep it sensible. I can’t wait to read far more from you. This is actually a great web site.

    business service at2017-04-24 23:25 Comment
  18. avatar
    -32#

    Hiya there, just started to be alert to your blog through Bing and yahoo, and discovered that it is truly entertaining. I’ll be grateful should you decide keep up this.

    click at2017-04-25 02:24 Comment
  19. avatar
    -31#

    Fantastic beat ! I would like to apprentice while you amend your web site, how can i subscribe for a blog site? The account aided me a acceptable deal. I had been a little bit acquainted of this your broadcast provided bright clear concept

    Financial Business at2017-04-25 22:17 Comment
  20. avatar
    -30#

    It is usually perfect time to construct some goals for the extended term. I have digested this write-up and if I may just, I want to recommend you few intriguing suggestions.

    look at here now at2017-04-26 04:47 Comment
  21. avatar
    -29#

    This mattress STAYS. Passion it Love that Love this!

    the best mattress to buy at2017-04-26 09:44 Comment
  22. avatar
    -28#

    hello there and thank you for your information – I have certainly picked up something new from right here. I did however expertise a few technical issues using this web site, as I experienced to reload the web site lots of times previous to I could get it to load correctly. I had been wondering if your hosting is OK? Not that I am complaining, but sluggish loading instances times will very frequently affect your placement in google and could damage your quality score if ads and marketing with Adwords. Anyway I’m adding this RSS to my email and could look out for much more of your respective intriguing content. Ensure that you update this again very soon..

    Insurance at2017-04-26 12:56 Comment
  23. avatar
    -27#

    Thanks for the sensible critique. Me and my neighbor were just preparing to do a little research about this. We got a grab a book from our local library but I think I learned more from this post. I am very glad to see such fantastic info being shared freely out there.

    Automotive at2017-04-26 13:00 Comment
  24. avatar
    -26#

    I simply hope to inform you that I am new to posting and extremely liked your report. Very possible I am going to remember your blog post . You really have excellent article information. Acknowledge it for swapping with us your very own domain document

    their website at2017-04-26 17:43 Comment
  25. avatar
    -25#

    Really informative knowledge you’ll have said, thanks for publishing.

    navigate to these guys at2017-04-26 22:15 Comment
  26. avatar
    -24#

    I am not sure where you are getting your information, however good topic. I needs to spend a while finding out more or understanding more. Thanks for excellent information I was on the lookout for this information for my mission.

    Auto Parts at2017-04-27 09:43 Comment
  27. avatar
    -23#

    Excellent goods from you, man. I have understand your stuff previous to and you’re just too wonderful. I really like what you’ve acquired here, really like what you’re saying and the way in which you say it. You make it entertaining and you still care for to keep it smart. I can not wait to read much more from you. This is actually a tremendous web site.

    Computer Tower at2017-04-27 09:44 Comment
  28. avatar
    -22#

    Gday there, just turned receptive to your article through The Big G, and discovered that it’s really beneficial. I will like if you decide to persist this approach.

    this link at2017-04-27 21:55 Comment
  29. avatar
    -21#

    Hey here, just turned out to be conscious of your webpage through Bing and yahoo, and have found that it is seriously educational. I will take pleasure in should you decide continue on this.

    published here at2017-04-27 23:17 Comment
  30. avatar
    -20#

    Exceedingly absorbing specifics that you have mentioned, many thanks for putting up.

    Visit Website at2017-04-28 02:18 Comment
  31. avatar
    -19#

    I like what you guys are up also. Such smart work and reporting! Keep up the excellent works guys I¡¦ve incorporated you guys to my blogroll. I think it will improve the value of my web site :)

    health care at2017-04-28 03:07 Comment
  32. avatar
    -18#

    Hello my friend! I wish to say that this article is awesome, great written and include almost all important infos. I would like to look more posts like this .

    small business ideas at2017-04-28 03:08 Comment
  33. avatar
    -17#

    Hiya, I am really glad I have found this information. Today bloggers publish only about gossips and web and this is really irritating. A good website with exciting content, that is what I need. Thank you for keeping this site, I’ll be visiting it. Do you do newsletters? Can’t find it.

    kitchen remodel cost at2017-04-28 03:17 Comment
  34. avatar
    -16#

    Good day very nice blog!! Guy .. Beautiful .. Superb .. I will bookmark your site and take the feeds also¡KI am satisfied to search out numerous helpful information right here within the put up, we need develop more strategies on this regard, thank you for sharing. . . . . .

    international flights at2017-04-28 03:20 Comment
  35. avatar
    -15#

    It is really a great and helpful piece of info. I am glad that you just shared this useful info with us. Please keep us up to date like this. Thank you for sharing.

    Business at2017-04-28 03:57 Comment
  36. avatar
    -14#

    I have been surfing online more than 3 hours today, yet I never found any interesting article like yours. It is pretty worth enough for me. Personally, if all webmasters and bloggers made good content as you did, the internet will be a lot more useful than ever before.

    Jeep Car at2017-04-28 09:29 Comment
  37. avatar
    -13#

    The Best place for HTV, Glitter HTV and Cricut Blades!

    Maxwell Tinelli at2017-04-28 10:10 Comment
  38. avatar
    -12#

    Very well written information. It will be useful to everyone who utilizes it, as well as yours truly :). Keep doing what you are doing – i will definitely read more posts.

    Car & Automotive at2017-04-28 11:32 Comment
  39. avatar
    -11#

    Valuable information. Lucky me I discovered your web site by accident, and I am stunned why this twist of fate didn’t happened earlier! I bookmarked it.

    Computer & Technology at2017-04-28 12:06 Comment
  40. avatar
    -10#

    Excellent blog here! Also your website loads up very fast! What host are you using? Can I get your affiliate link to your host? I wish my web site loaded up as fast as yours lol

    Business at2017-04-28 12:41 Comment
  41. avatar
    -9#

    I am continually searching online for posts that can help me. Thx!

    Science & Education at2017-04-28 14:18 Comment
  42. avatar
    -8#

    Awsome site! I am loving it!! Will come back again. I am taking your feeds also

    Car & Automotive at2017-04-28 15:17 Comment
  43. avatar
    -7#

    Thank you for the sensible critique. Me and my neighbor were just preparing to do some research about this. We got a grab a book from our local library but I think I learned more from this post. I’m very glad to see such fantastic info being shared freely out there.

    Auto Seat Covers at2017-04-28 15:31 Comment
  44. avatar
    -6#

    Revise after just about two years: Mattress is still storing up fantastic. Fantastic purchase for a mattress without horrible chemicals. That is quite pleasant and looks to be actually properly created.

    queen size mattress prices at2017-04-28 16:42 Comment
  45. avatar
    -5#

    Heya here, just turned conscious of your website through yahoo, and discovered that it’s quite educational. I will appreciate if you carry on such.

    portland seo expert at2017-04-28 18:40 Comment
  46. avatar
    -4#

    What i don’t understood is in truth how you are now not really much more well-liked than you might be now. You are so intelligent. You recognize therefore considerably when it comes to this topic, produced me in my opinion imagine it from so many numerous angles. Its like women and men don’t seem to be interested except it is something to do with Lady gaga! Your personal stuffs excellent. At all times deal with it up!

    Business at2017-04-28 20:14 Comment
  47. avatar
    -3#

    Whats Going down i’m new to this, I stumbled upon this I have discovered It positively useful and it has helped me out loads. I am hoping to contribute & help other customers like its aided me. Good job.

    Business at2017-04-28 20:17 Comment
  48. avatar
    -2#

    My brother suggested I might like this web site. He was entirely right. This post actually made my day. You cann’t imagine simply how much time I had spent for this information! Thanks!

    Travel Hacks at2017-04-28 21:02 Comment
  49. avatar
    -1#

    Very nice post. I just stumbled upon your blog and wished to say that I have truly enjoyed surfing around your blog posts. After all I’ll be subscribing to your feed and I hope you write again very soon!

    Truck at2017-04-29 01:00 Comment
  50. avatar
    0#

    Just opportunity will inform that, however they are beginning to appear definitely well created. They are actually comfortable for pair of 70-somethings, but they are actually certainly not also soft either.

    bed bug management at2017-04-29 04:59 Comment
  51. avatar
    -49#

    This is right occasion to construct some intentions for the upcoming. I have digested this blog post and if I can possibly, I wish to encourage you handful of important recommendation.

    portland seo at2017-04-29 07:58 Comment
  52. avatar
    -48#

    Definitely, what a fantastic site and instructive posts, I definitely will bookmark your blog.Have an awsome day!

    Limo Service at2017-04-30 10:18 Comment
  53. avatar
    -47#

    .}

    sell at2017-04-30 18:52 Comment
  54. avatar
    -46#

    Thanks for sharing superb informations. Your website is very cool. I am impressed by the details that you¡¦ve on this web site. It reveals how nicely you perceive this subject. Bookmarked this web page, will come back for extra articles. You, my pal, ROCK! I found just the information I already searched everywhere and simply couldn’t come across. What a perfect web site.

    Exploration Careers Information at2017-05-01 01:13 Comment
  55. avatar
    -45#

    I simply needed to thank you very much yet again. I’m not certain the things that I would have handled in the absence of these opinions revealed by you on this theme. It absolutely was a real frustrating problem in my circumstances, but noticing a well-written fashion you resolved that took me to leap with joy. I will be happier for the support and then pray you know what a powerful job you’re putting in instructing the rest using your website. I’m certain you’ve never got to know all of us.

    Auto Repair Advice at2017-05-01 08:16 Comment
  56. avatar
    -44#

    Great write-up, I¡¦m regular visitor of one¡¦s website, maintain up the nice operate, and It’s going to be a regular visitor for a lengthy time.

    Exploration Careers Information at2017-05-01 11:27 Comment
  57. avatar
    -43#

    Great Message Reservoirs Seven telling!

    cheap ralph lauren polo shirt at2017-05-01 12:50 Comment