Informants play a critical part in criminal investigations, and so law enforcement officers are often willing to pay other criminals for information. But while being an informant does have its perks, it can also be very dangerous – thus, few will talk unless they’re getting something out of it. And in many cases, that’s money.

But paying informants lump sums of cash can also put them in danger – after all, it’s hardly anonymous is it? Which is why spies in Switzerland are now looking at a smarter way of sending payments, using Bitcoin.

According to reports, during a corruption investigation earlier this year, the Swiss Federal Intelligence Service (FIS) considered using Bitcoin to pay their informants abroad due to the fact it leaves no paper trail.

Documents unearthed by investigators of the “Giroud Affair” revealed plans for using Bitcoin to pay informants. First, the FIS would hire a company to purchase the Bitcoins, and the same company would then send payments to informants abroad, who can do whatever they please with it. The documents listed the following advantages in using Bitcoin to pay informants:

“No couriers, no international bank transactions, solid contract and payment environment, disguise and ‘plausible deniability’, reduced costs.”

Switzerland’s spies also believe Bitcoin would allow them to keep their informants ‘on the books’ for longer, as it means informants are less likely to be identified.

The FIS has yet to confirm or deny the reports.

Bitcoin was once seen as the currency of the unscrupulous because of its connection to the now defunct black cybermarket Silk Road, but many are proving that it can be very useful not just for ordinary people but for government agencies and authorities as well.

Take for example the Bitcoin Bounty Hunter service commissioned by Roger Ver. It employs the community to help catch hackers who have been disrupting the cryptocurrency community. Those who will be able to submit evidences that will lead to the conviction of the perpetrator will be given a reward based on how much Bitcoins were raised to fund the specific case.

photo credit: AJC1 via photopin cc