The global policy counsel of the Bitcoin Foundation flew to Florida to meet with officials from U.S. Special Operations Command for a daylong discussion on the role of so-called cryptocurrencies—of which bitcoin is the best known—in illicit finance… The military’s interest in virtual currency is part of an overall effort by special operations forces to understand how their enemies finance themselves, and what intelligence special operators can glean by following the illicit money…Defense officials said ISIS is part of a global dark network on the Internet that is involved in the use of virtual currency—although ISIS itself is “principally funded through means other than virtual currency.”
The invitation-only event, called simply the “Virtual Currency Workshop,” was held at an office building in downtown Tampa near MacDill Air Force Base where Special Operations Command is based,…It was organized by a little-known but highly influential group called Business Executives for National Security, which facilitates connections between American business leaders and the U.S. military.The group’s members include a who’s who of America’s corporate and financial elite, according to its website, including Jeff Bezos of Amazon, former AIG CEO Hank Greenberg and David Koch of Koch Industries.,,,
A key question for the officers in the room: Can the U.S. military trace bitcoin? “That’s a difficult question,”… For the Bitcoin Foundation, which represents a broad array of libertarian technologists who can be skeptical of the U.S. government, meeting face-to-face with the national security establishment carries certain risks. “This is the first time I’ve talked in an organized way with the U.S. military,” said Jim Harper, global policy counsel of the Bitcoin Foundation. For their part, the special operations officers said it’s their job to dive into and understand new communities. ” … The military officials said they are mindful of the civil liberties concerns involved in monitoring private financial transactions on the Internet. “Anytime we come across information about a U.S. citizen, that information is to be disposed of if it is discovered,” the official said. “Our purpose is never to disrupt legitimate businesses.”
Participants in the event said they agreed to hold it under “Chatham House rules” that barred them from identifying other attendees or revealing what was said.
Excerpts, Eamon Javers , Special Ops grill bitcoin for its terror fight, CNBC, Sept. 27, 2014