WannaCry blames Bitcoin for ransomware? US National Security Advisor says NO!

A think tank that serves multiple U.S. government agencies is currently exploring the potential threat that Bitcoin poses to national security.

Contrary to some incendiary calls to ban Bitcoin, the study, led by Yaya J Fanusie, director of analysis at the Center on Sanctions and Illicit Finance in Washington, aims to find as many applications as possible for how blockchain can help prevent illegal activity.

Fanusie, who worked as an economic and counterterrorism analyst at the CIA for seven years, told reporters:

"What we need is more discussion about its possibilities and its significance, because there is so much resistance on both sides at the moment, and I think we should move a little closer to the middle, pointing out its potential threats, but also pointing out the benefits it has."

The Foundation for Defense of Democracies is a nonprofit organization founded in 2001 that advises members of Congress, federal agencies, the U.S. Treasury Department and others on how to prevent terrorism.

Fanusie was hired in 2015, when he first began to consider the potential threat posed by Bitcoin and other cryptocurrencies to national security. At the time, he was skeptical that most of the unverifiable claims were true, but he stepped up his research when he discovered that a known terrorist group was using Twitter to raise funds for their weapons.

Last month, media reported that the Swedish government had allowed a venture capital firm to invest in Iran using Bitcoin.

And the startup, Brave New World Investments, could end up being a legal way for some to circumvent U.S. sanctions.

But in Fanusie's view, the potential threat of Bitcoin should not be exaggerated. He said:

“This is not going to be a massive loophole that’s going to funnel billions of dollars into the Iranian regime.”

A balanced view

Regarding the recent WannaCry ransomware attack that has received widespread media coverage, Fanusie attempted to alleviate the public's misunderstanding of Bitcoin.

Fanusie believes that the hacker's actions are more proof that Bitcoin makes transactions impossible for financial institutions to block.

“Bitcoin itself is not illegal,” Fanusie said, “it’s just a method of transacting that has become increasingly popular recently.”

In the future, Fanusie said cyber forensic investigations will likely require the assistance of blockchain.

Fanusie said:

“The lesson from this incident is that those concerned about illicit financing need to become familiar with these cryptocurrencies and that we should not be afraid of this technology but rather embrace this increasingly digital online world.”

Blockchain and Democracy

In its infancy, blockchain technology has made the need for middlemen much less (or completely unnecessary), and Fanusie believes that the starting point of Bitcoin developers is "a desire for freedom." They want to trade or interact in a more democratic way.

While Bitcoin is a potential threat to national security, it is still worth studying, and Fanusie also emphasized that we need to learn more about its benefits.

Just this week, a U.S. congressional study provided a better understanding of the potential links between cryptocurrencies and terrorism, and the United Nations Office on Drugs and Crime formed a new partnership with blockchain analysis firm Chainalysis.

Fanusie said he wanted to learn more about blockchain applications, such as how central banks around the world might implement different blockchain solutions.

He concluded:

"We should think from the U.S. perspective, what does it mean if the U.S. lags behind? If policymakers don't understand. What does it mean for strategic national security interests? I'm not answering that question, I'm raising that question."