- While some see cryptocurrencies as a way to make a profit, in regions like the Gaza Strip, citizens see them as their only livelihood.
- Because of the war, the autonomous Palestinian territory has suffered an increase in unemployment of 45 percent, in addition to the fact that the poverty rate has reached almost 80 percent.
- Since 2020, a growing number of Palestinians have found in cryptocurrencies a way to bypass Israeli monetary limitations and literally be able to subsist by buying and exchanging cryptocurrencies.
Much has been said about the use of digital assets in international finance, betting to earn more money and cases of big losses due to ignorance of the market or putting “all eggs in one basket”.
However, it is a fact that while for some they are simply another means of investment, for others they simply represent their only form of livelihood. This is the case for the citizens of the Gaza Strip, an autonomous Palestinian territory administered by the Palestinian Islamist party, Hamas, since 2007.
Bitcoin, a lifeline in the economic desert of Gaza?
In this region the war has killed more than just soldiers, but also small businesses and with them, the hopes of those who managed them to survive.
Due to several blockades due to the political problems in the region, finding a job is seen as a daunting task, because unemployment exceeds 45 percent, In addition to the fact that the poverty rate has reached almost the 80 percent, added to the fact that the Palestinian Monetary Authority in Ramallah is not currently capable of issuing banknotes, which is why Palestinians in the West Bank and Gaza are virtually dependent on donations and international humanitarian aid as a financial lifeline.
Due to these circumstances, many Palestinians are fleeing the collapse of the economy, turning to online freelance work as almost the only means of survival, and since 2020, a growing number of Palestinians have found in digital currencies a way to circumvent Israeli monetary limitations and literally power, subsistbuying and exchanging cryptocurrencies.
Let us remember that digital assets such as Bitcoin, offer the possibility to their users to carry out independent transactions between peers without intermediaries, in addition to having the great advantage (in this case) of being resistant to censorship.
Likewise, every time any type of transaction is registered, it is possible to monitor it, in addition to the fact that the money can be easily traced through the chain of blocks (blockchain). But the best of the best for the Gazans is that the Bitcoin is not a centralized currency that Israel’s banks can control, limit or track, which can almost guarantee them a secure income.
It is so that, since it is open to everyone and is very easy to learn, digital asset trading is an outlet for thousands of citizens in Loop they have to deal with unemployment and poverty, despite their extreme volatility.
For a Gazan, volatility means nothing more than making money, yet they know there is a lot of money to lose, which is especially disconcerting to those who borrow money or sell jewelry to invest.
Difficulties in crypto trading
However, although being able to get hold of some cryptocurrencies might seem like the solution to your economic problems, other obstacles must first be overcome, since, As Palestinians in Gaza increasingly embrace the crypto market, Palestine is forced to use the Israeli shekel as its primary currency.
Likewise, Palestinians cannot pay their shekels, dollars or Jordanian dinars on online exchanges, as none of them operate with local banks in Palestine.
These limitations make the use of digital assets more difficult, since when people want to cash out their digital tokens, they can’t do it like anyone who goes to the bank and withdraws an amount of money, instead, they require an over-the-counter exchange that is willing to work with local banks, and that Israel cannot track, monitor or limit.
Therefore, one of the few options available to get money, is for a person to send their Bitcoins to someone outside of Gaza who can exchange it for local money, and then send it back to Gaza through bank accounts such as MoneyGram or PayPal and blindly trust the goodwill of that person so that they do not keep the money.
As if this were not enough, the limitations also grow when taking into account the scarcity of access to smartphones and the fact that very few people have technical knowledge about virtual currencies and online payment options.
constant fear
Such is life in Gaza, a place where Israeli repression and the volatility of virtual currencies put its citizens under constant stress, coupled with the fact that the Israeli military has been trying to crack down on cryptocurrency trading in Gaza. Loop, seizing various electronic walletsas a measure to cut off the income of the Palestinian group Hamas.
In this regard, Benny Gantz, outgoing Israeli Defense Minister, gave the military the green light to seize crypto wallets that they believe are used to finance the hard-line leadership of Gaza, classified as a terrorist group by Israel, the United States and the European Union. among others.
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