How cryptocurrency is reshaping national security

Over the past decade, the proliferation of cryptocurrencies has presented both challenges and opportunities for government organizations worldwide. But as cryptocurrencies evolve and grow in complexity, governments must remain vigilant and adapt their strategies to counter national security threats from malicious actors.

In a panel discussion, Joan Heald, vice president of IC/DoD Software Solutions for Chainalysis and COL. David Hamilton, US Army (Ret.) and threat finance exploitation consultant join Scoop News Group to shed light on how cryptocurrency impacts national security.

To effectively address these challenges, governments require new tools and expertise to navigate the unorthodox financial landscape. Heald explains that blockchain technology can play a significant role in enhancing national security and safeguarding critical infrastructure.

“We use proprietary mechanisms, datasets, and machine learning models to attribute on-chain activity to real-world entities,” says Heald. She explains that blockchains’ distributed and decentralized nature ensures the integrity of sensitive national security data, prevents unauthorized modifications and maintains a reliable audit trail.

Hamilton discusses the challenges the U.S. and its allies face in monitoring nation-states and their collaboration with cryptocurrencies for illicit activities. He stresses the importance of maintaining a leading position in financial intelligence capabilities through continuous assessment, collaborative tools and training.

“The financial intelligence capability of the West enabled by growing blockchain analytics is unmatched. But the sharpest tool we have to counter an adversary’s cryptocurrency activity is conditions-based access to the US-dominated Western banking system,” says Hamilton.

To effectively tackle these challenges, policymakers and officials need to share a comprehensive understanding of the risks and opportunities presented by the crypto space. Investing in tools and expertise within the legal authority is crucial, they say.

They also argue that crypto experts and public sector leaders have a responsibility to demonstrate the safety and value transfer potential of cryptocurrencies. Policymakers should acknowledge the risks, invest in solutions, and prioritize ongoing awareness, education, and funding.

Discover effective strategies to combat crypto crime and strengthen national security by visiting Chainalysis and speaking with one of their experts.

Learn more here for further insights into the intersection of cryptocurrency and national security

This video panel discussion was produced by Scoop News Group and underwritten by Chainaysis.