Given the key role of funding in supporting terrorist operations, counterterrorism finance (CTF) efforts often focus on tracking money and preventing financial transactions that might be used to support attacks and other terrorist activities. However, the success of these strategies in reducing terrorist access to official currencies has raised concerns that terrorist organizations might increase their use of such digital cryptocurrencies as Bitcoin to support their activities.

Current cryptocurrencies are not well matched with the totality of features that would be needed and desirable to terrorist groups but might be employed for selected financial activities. The authors' research shows that, should a single cryptocurrency emerge that provides widespread adoption, better anonymity, improved security, and that is subject to lax or inconsistent regulation, then the potential utility of this cryptocurrency, as well as the potential for its use by terrorist organizations, would increase. Regulation and oversight of cryptocurrencies, along with international cooperation between law enforcement and the intelligence community, would be important steps to prevent terrorist organizations from using cryptocurrencies to support their activities.