Bitcoin Possesses Potential to Fund Terrorism: BI

Denpasar, Bali, MINA – Bank Indonesia (BI), the central bank, has stated that the digital currency Bitcoin possesses the potential to be used as terrorism funds and in money laundering crimes as its transactions are being done under a pseudonym.

“For that reason, the government and BI have reminded the public to avoid using Bitcoin as a means of payment, as it violates the State Law on Currency,” Antara News reported, citing the statement of the Head of the Bali BI Payment System and Money Management division, Teguh Setiadi, in Denpasar, Bali, on Wednesday.

Based on the data released by the Central Bank`s Communication Department, Bitcoin had previously been used in a terrorism act, including the Alam Sutera Mall bombing incident in Jakarta, in which the perpetrator threatened the management of the mall and asked for a hundred Bitcoins as ransom in 2015.

The United States Federal Bureau of Investigation had also raided Silk Road, a networked illegal market that trades contraband, including drugs, using Bitcoin in 2013.

Furthermore, in 2015, hackers, under the name Ghost Security Group, revealed a number of finance accounts belonging to the militant group ISIS within the Bitcoin network, one of which contained funds worth Rp41.1 billion.

The bank`s Communication Department also mentioned that the parties facilitating the public in virtual currency trade are prone to cyber attacks and have very low supervision, which means their consumers are weakly protected.

Bitcoin, he continued, does not have its own authority or supervisory body, which leads to uncertainty in the protection of the public.

Furthermore, the value in the digital currency fluctuates very often, bearing an odd number, which means it has the potential to cause losses to its users.

Bitcoin is one of the five major digital currencies in the world, among Ethereum, Ripple, Bitcoin Cash, and Cardano, from the total of 1,300 digital currencies. (T/RS5/RS1)

Mi’raj Islamic News Agency (MINA)