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Cyber terrorism could also become more attractive as the real and virtual worlds become more closely coupled, with automobiles, appliances, and other devices attached to the Internet.
Systems are complex, so controlling an attack and achieving a desired level of damage may be harder than using physical weapons.
While the vast majority of hackers may be disinclined towards violence, it would only take a few to turn cyber terrorism into reality.
Further, the next generation of terrorists will grow up in a digital world, with ever more powerful and easy-to-use hacking tools at their disposal.
I think most organizations have an interest in key recovery, at least with respect to stored data.
We have never really had absolute privacy with our records or our electronic communications - government agencies have always been able to gain access with appropriate court orders.
Generally I'm against regulation.
Everyone is a proponent of strong encryption.