Today THE PAPERS web-site reports that, “Islamic State has allegedly started using the Bitcoin virtual online currency as a tool to secretly raise funds and settle transactions.”

They continue: 

• “Members of the coalition worry that the use of Bitcoin, which is harder to monitor than bank accounts, would make it even more difficult to choke off the funds and defeat the group. The suspicion about the use of Bitcoin reinforces speculation that the social media-savvy group is using cyberspace not only to recruit new members but collect and secure money to fund its activities.”
• “The extremist group has been apparently securing funds through trade in commodities such as petroleum and natural gas, but questions have remained about how its members transfer money and make payments.”

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CTMfile take: Because Bitcoin is a distributed virtual currency which does not track individual transactions, it provides users with secrecy AND because it is readily exchangeable with currencies such as USD and the CNY online, see, it is perfect for Islamic State to move funds world-wide. The distributed value transfer systems genie is out of the bottle. It cannot be put back now there is an exchange rate to the recognised financial currencies. How can they be controlled?