Will bitcoin be a primary currency of Islamic State as it seeks to establish an actual nation?
Islamic State (IS) has used bitcoin to raise funds, according to Deutsch Welle, a German-based satellite TV station. An IS bitcoin account received around $23 million in the past month, according to the report.
Bitcoin And The ‘Gold Dinar’
In addition to using bitcoin, IS has also minted and released its own currency called the “gold dinar.” The group’s use of the two currencies, however, will likely serve different purposes. Bitcoin serves fund raising and money management while the gold dinar serves more as an ultimate measure of goods nad services.
“Sadaqa (private donations) constitute one of ISIL’s main sources of revenue, and its supporters around the world have allegedly used digital currencies such as Bitcoin to transfer money quickly to accounts held by ISIL militants while minimizing the risk of detection,” according to a June report from the EU Institute for Security Studies (EUISS).
The Deutsch Welle report notes that