Hamas Turns to Cryptocurrencies Amid Mounting Financial Scrutiny

According to a spokesperson for Qassam Brigades Abu Obaida, the move was deemed necessary because Israel has been actively trying to close down all channels of financial support to the group. The Qatari government, one of the group’s strongest allies, has received emergency cash donations in light of these restrictions. Moving to Bitcoin will likely serve as a long-term solution for the group, in spite of the slightly more complicated onboarding process for first-time users.

Speaking with Asia Times, a Gaza resident operating a currency exchange business said that residents have been migrating to cryptocurrency-based solutions in droves. This has been the case ever since residents of Gaza found that electronic banking methods had been placed under strict surveillance. So far, there are no laws or limitations on the trading of virtual currencies, enabling their sale and trade anywhere in the region.

Of late, the digital currency ecosystem has become increasingly popular in impoverished locations and countries with failing economies. Unlike state-backed fiat currencies, Bitcoin cannot be controlled, suppressed, or traced by a third-party entity. It is also effective in regions where censorship is prominent since it serves as a permanent record of financial, as well as non-monetary, transfers.

Reference: https://beincrypto.com/gaza-authorities-turn-to-cryptocurrencies-amid-mounting-financial-scrutiny/

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