Speaker: Blockchain technology could be revolutionary but presents national security risks

Speaker of the House Anglu Farrugia said while blockchain technology could revolutionise data management, financial systems, and governance, it also presents significant national security risks.

Focusing on Central Bank Digital Currencies (CBDCs), he said the technology’s introduction could allow Malta’s government to gain real-time control over monetary flows, which could help combat money laundering and tax evasion. However, he raised concerns about the implications for privacy, highlighting that such control could lead to excessive surveillance.

He was speaking during Parliamentary Intelligence Security Forum, held between the 4 and 5 December in Washington.

In his second intervention, Speaker Farrugia turned the spotlight on the “dark nexus” between human trafficking and global terrorism, calling it an urgent national and regional security issue.

He explained that criminal networks use human trafficking to fund terrorism, with groups like ISIS using trafficked individuals for sexual slavery, forced labour, and recruitment.

He pointed out that Malta, due to its geographical location, as a critical point for migration flows from Africa and the Middle East, is both a destination and a transit hub for trafficking activities and though Malta has made progress through legislative measures such as the 2017 Human Trafficking Act, he acknowledged the complexity of dismantling such transnational networks.

Farrugia called for more effective international cooperation to target the root causes of trafficking, such as poverty and instability, and to disrupt the criminal enterprises that sustain terrorism.

He concluded by stressing Malta’s pivotal role in addressing these security challenges urging that while embracing technological advances like blockchain, the country must remain vigilant in safeguarding both its sovereignty and the rights of its citizens.

Moreover, in the fight against human trafficking, Malta must continue strengthening its partnerships with the EU and international organisations to combat trafficking networks that fuel terrorism and that destabilise regions.