Analysis of Potential Threats of NFTS (Non-Fungible Tokens) for National Security and Economic Resilience. A Case Study of Indonesia

Abstract

Technological advancements have significantly shaped global society, leading to widespread reliance on technology across various domains. This pervasive influence is particularly evident in the daily lives of individuals, who heavily depend on the digital world and internet connectivity. Crucial sectors such as finance, trade, and the creative industry have embraced the digital realm, with the emergence of Non-Fungible Tokens (NFTs) representing a novel approach for creators to acquire recognition and value for their work. However, this technological progress has also presented opportunities for criminal exploitation, as illicit activities such as money laundering and terrorism funding have transitioned to the digital landscape. This study employs a secondary research methodology to investigate the vulnerabilities associated with the use of NFTs as a medium for money laundering and terrorism funding. The study aims to highlight the potential implications for national economic resilience if these issues are not adequately addressed and securitized. By combining the constructivism theory with the concept of securitization, this work explores how the adoption of NFTs can pose a national concern, affecting both economic stability and security. Furthermore, the research reveals that the anonymity feature inherent in NFT transactions facilitates easier execution of money laundering and terrorism funding activities, thereby posing risks to a country's national security and economic resilience.