The Combatting Terrorism Technical Support Office, a section inside the Department of Defense, is conducting an investigation into the possibility that the digital currency called Bitcoin could become a terror threat.

The division is leading a program that provides assistance to military to further understand how state-of-the-art technologies like bitcoin and other online currencies could become a concern for national security, according to the International Business Times.

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Reportedly, one of the biggest concerns lies on the anonymity clause included in transactions using bitcoins, wherein the people who will transact using the virtual currency will remain anonymous despite having a public record of the said transaction.

Based on the business site, bitcoins can be used in illegal operations with the help of the Internet, but with the discretion normally present in a cash transaction.

Several important cases have shown the vulnerability of using bitcoins, including the October shut down of the digital black market, Silk Road, by the FBI.

The founder of the site was charged with money laundering and drug trafficking.

A probe by the Treasury Department discovered no evidence linking the use of bitcoin in financing terrorism, yet the nature of anonymity of all the transactions makes several law enforcement agency officials wary.

CTTSO is worried that several anonymous networks could use virtual currencies to have successful illegal transactions, including high-powered guns, drugs, nuclear technologies and people without alerting the authorities.