Abstract:
This conceptual study examines the potential and challenges of using cryptocurrencies for terrorist financing by jihadi groups through the lens of network theory. By conducting a literature review, content analysis, and scoping review, the research synthesises data from academic sources, reports, and online repositories. The study finds that while anonymity and decentralisation of cryptocurrencies raise concerns about terrorist exploitation, several technological, regulatory, and ideological barriers have limited their widespread adoption for illicit financing so far. Key impediments include technological complexities, a lack of true anonymity, difficulties in converting cryptocurrencies, extreme volatility, and cultural factors favouring traditional financing methods. The analysis concludes that, over the near-term, cryptocurrency use by jihadists will likely remain confined to technologically sophisticated plotters. However, counterterrorism efforts must maintain vigilance as cryptocurrency adoption grows globally. Implementing robust monitoring mechanisms and regulations is recommended to mitigate emerging threats.
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